The Nigerian National Petroleum Company Limited (NNPC Ltd) has addressed claims made by the Muslim Rights Concern (MURIC) that NNPC Ltd’s actions are undermining the Dangote Refinery Limited (DRL). MURIC suggested that changes to the pump price of Premium Motor Spirit (PMS) would prevent Dangote Refinery from offering lower prices and implied that NNPC Ltd had become the sole offtaker of products from the refinery.
In a press release, NNPC Ltd clarified the situation, stating that:
1. Global Market Forces Determine Pricing: Pricing for petroleum products, including those from DRL, is set by global market conditions. The recent adjustments in PMS prices do not affect the refinery’s ability to compete in the Nigerian market, and if prices are considered high, DRL has the opportunity to sell at lower rates.
2. Open Market for Domestic Refineries: NNPC Ltd reiterated that DRL and other refineries are free to sell directly to any marketer on a willing buyer, willing seller basis. NNPC Ltd will only offtake PMS from DRL if market prices are higher than pump prices in Nigeria, affirming that the company does not intend to be a sole distributor.
3. NNPC Ltd’s Investment in Dangote Refinery: NNPC Ltd pointed out that it holds a significant financial stake in DRL and would not undermine the refinery’s operations.
The statement concluded by urging MURIC to verify facts before making potentially inciting claims.
