By : Adeosun Ewatomi
The Nigerian National Petroleum Company Limited (NNPC Ltd) has responded to concerns raised by the Muslim Rights Concern (MURIC) regarding the Dangote Refinery Limited (DRL) and the pricing of Premium Motor Spirit (PMS) in Nigeria.
MURIC had alleged that NNPC Ltd's actions, particularly recent changes in pump prices, were undermining the Dangote Refinery's ability to offer lower prices and that NNPC Ltd had become the sole offtaker of all products from the refinery.
In a press statement, NNPC Ltd, represented by its Chief Corporate Communications Officer Olufemi Soneye, clarified several key points. Firstly, the pricing of petroleum products, including those from the Dangote Refinery, is determined by global market forces, not by NNPC Ltd's actions.
Furthermore, NNPC Ltd argued that the recent price adjustments do not hinder the DRL, or any other domestic refinery, from selling their products at lower prices in the Nigerian market. In fact, the high current prices present an opportunity for domestic refineries to offer competitive pricing.
The NNPC Ltd has addressed concerns raised by the Muslim Rights Concern (MURIC) regarding the Dangote Refinery Limited (DRL) and the pricing of Premium Motor Spirit (PMS) in Nigeria.
MURIC had claimed that NNPC Ltd's actions, particularly recent changes in pump prices, were undermining the Dangote Refinery's ability to offer lower prices and that NNPC Ltd had become the sole offtaker of all products from the refinery.
To clarify the situation, NNPC Ltd made the following points:
1. The pricing of petroleum products, including from the Dangote Refinery, is determined by global market forces, not by NNPC Ltd's actions. The recent PMS price changes do not impact the DRL or any other domestic refinery's access to the Nigerian market. In fact, the high current prices present an opportunity for the refinery to sell its products at lower prices.
2. There is no guarantee of lower prices associated with domestic refining compared to global parity pricing. The NNPC Ltd will only fully offtake PMS from the DRL if the market prices are higher than the pump prices in Nigeria. The DRL and other domestic refineries are free to sell directly to any marketer on a willing buyer, willing seller basis. NNPC Ltd has no intention of becoming a sole offtaker.
3. The NNPC Ltd cannot undermine a business in which it holds a billion-dollar stake.
4. MURIC should have verified the facts before making statements that are flawed and have the potential to incite Nigerians against the NNPC Ltd.
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