Olufemi Adeyemi
Nigerian National Petroleum Company Limited has refuted allegations that it is the cause of the recent increase in the price of Premium Motor Spirit, commonly referred to as petrol, in Nigeria.
The company clarified that the pricing of petroleum products
from any refinery, including Dangote Refinery Ltd, is influenced by global
market dynamics, and there is no assurance of reduced prices linked to domestic
refining within the country.
This statement was made on Saturday in response to
speculation regarding its alleged efforts to monopolize the procurement of all
products from the Dangote refinery.
In a statement titled “NNPC Ltd Not the Sole Offtaker;
Market Open to Lower Prices from Any Domestic Refinery,” the Chief Corporate
Communications Officer of the company, Olufemi Soneye, noted that the NNPC Ltd
had taken notice of a press release from the Muslim Rights Concern (MURIC),
which claimed that the actions of the NNPC Ltd were undermining the Dangote
Refinery Limited (DRL).
MURIC specifically contended that the recent adjustments in
the pump price of Premium Motor Spirit (PMS) would hinder the Dangote Refinery
from providing lower prices and that the NNPC Ltd has become the exclusive
off-taker of all products from the refinery.
To clarify, the company stated, “The pricing of petroleum
products from any refinery, including the Dangote Refinery Ltd. (DRL), is
determined by global market forces.
The NNPC further asserted that the recent fluctuations in
PMS prices do not affect the DRL or any other domestic refinery's access to the
Nigerian market, adding that if current prices are viewed as elevated, it
creates a favorable opportunity for the refinery to offer its products at lower
prices in the Nigerian market.
The NNPC also reiterated that there is no assurance of lower
prices associated with domestic refining when compared to any global pricing
framework, as confirmed by the DRL.
NNPC Ltd. will only purchase PMS from the DRL when the
market prices exceed the pump prices in Nigeria. The DRL, along with other
domestic refineries, is permitted to sell directly to any marketer based on a
willing buyer, willing seller arrangement, which aligns with the current
practice for all fully deregulated products.
NNPC Ltd. has no intention of acting as a distributor for
any entity within a free market framework, thus the idea of becoming a sole
off-taker is not applicable, according to the company.
The NNPC emphasized that it cannot compromise a business in
which it has invested a billion dollars.
As an organization advocating for equitable treatment, MURIC
should have confirmed the facts prior to issuing statements that are
fundamentally incorrect and could potentially provoke public sentiment against
NNPC Ltd., the company stated.