The Nigerian National Petroleum Company Limited (NNPC Ltd) has declared that Dangote and other refineries are free to sell directly to marketers.
This was posted on NNPC X’s handle on Saturday, 7th September 2024.
NNPC addressed recent claims by the Muslim Rights Concern (MURIC) that suggest NNPC Ltd is undermining the Dangote Refinery Limited (DRL).
MURIC’s press release alleges that recent changes in the pump price of Premium Motor Spirit (PMS) will hinder the refinery’s ability to offer competitive prices and that NNPC Ltd has become the sole buyer of all products from DRL.
In response, NNPC Ltd has clarified that the pricing of petroleum products, including those from Dangote Refinery, is influenced by global market forces.
Changes in PMS prices do not affect the refinery’s access to the Nigerian market. On the contrary, high market prices could provide the refinery with an opportunity to offer lower prices locally.
NNPC Ltd also emphasised that domestic refining does not guarantee lower prices compared to global parity pricing, a point confirmed by DRL.
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The company stated that it would only fully purchase PMS from DRL if market prices exceed local pump prices. DRL and other refineries are free to sell directly to marketers under a willing buyer, willing seller basis.
NNPC Ltd has no intention of becoming a distributor in a deregulated market, making the idea of it being the sole offtaker unfounded.
Furthermore, NNPC Ltd highlighted its substantial investment in Dangote Refinery, noting that it has no interest in undermining a business in which it holds a significant stake.
NNPC Ltd also called on MURIC to verify facts before issuing statements that could mislead the public and potentially incite negative sentiments against the company.
PRESS RELEASE
NNPC Ltd Not the Sole Offtaker; Market Open to Lower Prices from Any Domestic Refinery
The attention of the NNPC Ltd has been drawn to a press release by the Muslim Rights Concern, MURIC, which claims that the Dangote Refinery Limited (DRL) is being undermined by… pic.twitter.com/52DAYgGC3x
— NNPC Limited (@nnpclimited) September 7, 2024
