Dangote Refinery free to sell petrol directly to marketers – NNPCL

The Nigerian National Petroleum Company Ltd (NNPCL) has said Dangote Refinery and other domestic refiners are “free to sell directly to any marketer on a willing buyer, willing seller basis”, thereby dismissing the allegation of the national oil company becoming a sole offtaker. The NNPCL was reacting to the Muslim Rights Concern (MURIC’s) claim that […]

The Nigerian National Petroleum Company Ltd (NNPCL) has said Dangote Refinery and other domestic refiners are “free to sell directly to any marketer on a willing buyer, willing seller basis”, thereby dismissing the allegation of the national oil company becoming a sole offtaker.

The NNPCL was reacting to the Muslim Rights Concern (MURIC’s) claim that the organisation hiked the price of Premium Motor Motor Spirit, aka petrol, to undermine the efforts of Dangote Refinery to reduce the price of petroleum products in the country.

MURIC in a statement signed by its Executive Director, Professor Ishaq Akintola, also advised NNPCL to allow Dangote Refinery to operate freely without undue interference.

But the Chief Corporate Communications Officer at NNPCL, Olufemi Soneye, in a statement, on Saturday, took a swipe at MURIC, describing its position as “entirely flawed” and the one that is capable of inciting ordinary Nigerians against the NNPC Ltd.

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Soneye said the NNPCL is not the sole offtaker while maintaining that the market remains open to lower prices from any domestic refinery.

“The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd (DRL), is determined by global market forces. The recent changes in PMS prices have no impact on the 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,” he explained.

Sonoye emphasised that “there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL.”

He said “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 offtaker does not arise.”

He also declared that “The NNPC Ltd cannot undermine a business in which it holds a billion-dollar stake.”

“As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and has the potential to incite ordinary Nigerians against the NNPC Ltd.”