The Nigerian National Petroleum Company Limited (NNPC) has clarified that its recent Premium Motor Spirit (PMS) pricing will not hinder the Dangote Refinery from offering lower prices.
This response comes after allegations by the Muslim Rights Concern (MURIC) that NNPC’s pricing changes could prevent the refinery from providing cheaper petrol to Nigerians.
In a statement issued by Olufemi Soneye, Chief Corporate Communications Officer of NNPC, the company emphasized that global market forces determine petroleum prices, not NNPC’s decisions.
The Dangote Refinery, like other refineries, operates in a free market and is therefore able to set competitive prices based on market conditions.
NNPC also dismissed concerns about monopolizing the offtake from the Dangote Refinery, reaffirming its commitment to a market-driven approach. It emphasized that the Dangote Refinery and other refineries are free to sell to any marketer under a “willing buyer, willing seller” framework.
While NNPC may offtake PMS from the refinery, it will only do so if market prices are higher than Nigeria’s pump prices.
Devakumar Edwin, a vice president at Dangote Industries Limited, had previously indicated that NNPC, the country’s sole importer of petrol, would exclusively purchase the refinery’s petrol.
However, the company clarified that if demand for the refinery’s products is low domestically, it can export the surplus. This move is expected to help address Nigeria’s fuel supply challenges.
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