The Nigerian National Petroleum Company Limited (NNPCL) has clarified that the current price of Premium Motor Spirit (PMS), commonly referred to as fuel in Nigeria, is determined by global market forces rather than by the availability of domestic refineries in the Nigerian market.
This statement was made on Saturday by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, in response to allegations by the Muslim Rights Concern (MURIC) that the Dangote Refinery Limited (DRL) is being hindered by NNPCL’s actions.
MURIC had previously claimed that the recent changes in fuel pump prices would prevent the Dangote Refinery from offering lower prices, suggesting that NNPCL had monopolized the supply of products from the refinery. However, in his statement, Soneye firmly refuted these allegations.
“To set the record straight, NNPC Ltd. wishes to clarify the following points,” Soneye began. “The pricing of petroleum products from any refinery, including the Dangote Refinery, is governed by global market forces. The recent adjustments in PMS prices have no impact on the access of DRL or any other domestic refinery to the Nigerian market.”
He continued by emphasizing that if the current fuel prices are perceived as high, this actually provides an opportunity for the Dangote Refinery to introduce its products into the Nigerian market at lower prices.
Additionally, Soneye stressed that there is no assurance that domestic refining will result in lower prices compared to global market pricing. This position has been confirmed by the Dangote Refinery itself.
Soneye further explained that NNPCL would only fully offtake (purchase) PMS from the Dangote Refinery if the market prices of PMS exceed the regulated pump prices in Nigeria.
He pointed out that both the Dangote Refinery and any other domestic refinery are free to sell their products directly to marketers on a “willing buyer, willing seller” basis. This reflects the current practice for all fully deregulated products in the Nigerian market.
He also stated that NNPCL has no intention or interest in becoming the exclusive distributor for any refinery’s products in a free-market environment, and thus the idea of being the sole offtaker for the Dangote Refinery does not apply.
Soneye added that NNPCL has no reason to undermine the Dangote Refinery, especially considering that the company holds a significant billion-dollar stake in the business. In a pointed remark toward MURIC, Soneye advised the group to ensure that it has all the facts before making public statements that are incorrect and have the potential to mislead or incite the Nigerian public against NNPCL.
A few days prior to this, NewdayReporters had reported that Aliko Dangote, one of Nigeria’s top businessmen, disclosed that the retail price of petroleum products from his refinery in Lagos State would be set by the Nigerian government under the leadership of President Bola Tinubu. Dangote made this announcement during the unveiling of his refinery’s products, where he expressed confidence that his facility would help end fuel scarcity in the country.
Addressing the retail pricing structure, Dangote explained, “It is an arrangement that has been designed and approved by the Federal Executive Council, led by President Bola Tinubu.” He added that once the final details are settled, the refinery would be ready to begin selling its products.
“As soon as it is finalized, which President Tinubu is working to expedite, we are prepared to roll out our products into the market. This could happen today, tomorrow, or in the near future, depending on the conclusion of talks with the NNPC,” he concluded.
