The Nigerian National Petroleum Company (NNPC) Limited has denied a report by the Muslim Rights Concern (MURIC), that it intends to become Dangote refinery’s sole distributor.
In a statement issued on Saturday, the NNPC addressed allegations by the MURIC, accusing it of undermining the Dangote refinery and monopolising its products.
“The attention of the NNPC Ltd has been drawn to a press release by the, which claims that the Dangote Refinery Limited (DRL) is being undermined by actions of the Nigerian National Petroleum Company Limited (NNPC Ltd),” the statement reads.
“Specifically, MURIC asserts that recent changes to the pump price of Premium Motor Spirit (PMS) will prevent the Dangote Refinery from offering lower prices and that NNPC Ltd. has become the sole offtaker of all products from the refinery.”
“To set the records straight, NNPC Ltd. wishes to further state as follows:
“The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd. (DRL), is determined by global market forces.”
The NNPC said the recent changes in petrol prices have no impact on the Dangote refinery or any other domestic refinery’s access to the Nigerian market.
“In fact, if current prices are perceived as high, it presents an ideal opportunity for the refinery to sell its products at lower prices in the Nigerian market,” NNPC said.
The company also said there is no guarantee domestic refining would lead to lower prices compared to global parity pricing, stressing that it would only fully offtake petrol from Dangote refinery if market prices are higher than the pump prices in Nigeria.
“The DRL and any other domestic refinery are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products,” the company said.
“NNPC Ltd. has no desire or intention to become the distributor for any entity in a free market environment, and therefore, the notion of becoming a sole offtaker does not arise.”
The NNPC said it cannot undermine a business in which it holds a billion-dollar stake, adding that “MURIC should have verified the facts before making flawed statements that risk inciting the public against the company”.
