The Nigerian National Petroleum Company Limited declined to be the Dangote refinery’s exclusive buyer of its Premium Motor Spirit (petrol), hence the refinery may be forced to export the product.
Olufemi Soneye, the NNPC’s spokesperson, stated in a statement on Saturday that the company would not purchase Dangote fuel unless it was less expensive than what was available on the global market.
Aliko Dangote, the president of the Dangote Group, has stated that the refinery was waiting for the NNPC to release its product; this is untrue.
The NNPC said on Saturday that it would only completely offtake gasoline from the refinery in the event if PMS market prices exceeded Nigerian pump prices.
The NNPC further stated that it had no desire or plan to become the distributor for any firm in a free market setting, and that Dangote and other domestic refineries were free to sell directly to any marketer on a willing buyer, willing seller basis.
The business was responding to a press statement issued by the Muslim Rights Concern, which asserted that the NNPC was undermining the Dangote refinery.
According to MURIC, the company had taken over as the only buyer of all refinery goods and that the refinery would not be able to offer reduced rates due to recent modifications made by the NNPC to the pump price of gasoline.
Responding, the NNPC said, “The pricing of petroleum products from any refinery, including Dangote Refinery Limited, is determined by global market forces.
“The recent changes in PMS prices have no impact on DRL 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.
“Furthermore, we emphasise that there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL. The NNPC Ltd will only fully offtake PMS from the DRL if the market prices of PMS 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. 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 off-taker does not arise.”
Soneye added that the NNPC could not undermine a business in which it held a billion-dollar investment.