The Nigerian National Petroleum Company Limited (NNPC Ltd) has explained that it is not the sole offtaker of all products from the Dangote Refinery adding that the refinery is free to sell its petrol to any marketer.
Penpushing reports that the Chief Corporate Communications Officer of the company, Olufemi Soneye, gave the explanation in a statement on Saturday in reaction to a statement that the Dangote Refinery Limited is being undermined by actions of the company.
The company spokesperson said the pricing of petroleum products from any refinery, including the Dangote Refinery, is determined by global market forces, noting that the recent changes in petrol prices have no impact on Dangote Refinery or any other domestic refinery’s access to the Nigerian market.
“The attention of the NNPC Ltd has been drawn to a press release by the Muslim Rights Concern, MURIC, which claims that the Dangote Refinery Limited (DRL) is being undermined by actions of the Nigerian National Petroleum Company Limited (NNPC Ltd)’.
‘Specifically, MURIC asserts that recent changes to the pump price of Premium Motor Spirit (PMS) will prevent the Dangote Refinery from offering lower prices and that NNPC Ltd has become the sole offtaker of all products from the refinery’.
‘To set the records straight, NNPC Ltd wishes to further state as follows: The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd (DRL), is determined by global market forces.
“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. The recent changes in PMS prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market’, Soneye said.
Penpushing further reports that the statement pointed out that 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 Dangote Refinery Limited.”
Penpushing also reports that Soneye said the Nigerian National Petroleum Company Limited (NNPC Ltd) will only fully offtake petrol from the Dangote Refinery if the market prices of petrol are higher than the pump prices in Nigeria.
The spokesperson explained that the Dangote Refinery 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.
Penpushing reports that he added that the company 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.
“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 have the potential to incite ordinary Nigerians against the NNPC Ltd,” he said.
Penpushing further reports that it is recalled that the Muslim Rights Concern, (MURIC) on Friday, claimed that recent changes to the pump price of petrol will prevent the Dangote Refinery from offering lower prices and that Nigerian National Petroleum Company Limited (NNPC Ltd) has become the sole offtaker of all products from the refinery.
The Vice President at Dangote Industries Limited, Devakumar Edwin on Monday said the 650,000 barrels per day Dangote Refinery has begun the processing of petrol, explaining that the Nigerian National Petroleum Company Limited (NNPC Ltd), Nigeria’s sole importer, would buy its product exclusively.
Penpushing also reports that the President of Dangote Group, Aliko Dangote, while speaking to journalists on Tuesday said the petrol refined from the refinery would hit filling stations across the country within 48 hours, depending on the Nigerian National Petroleum Company Limited (NNPC Ltd).
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