MURIC had alleged that NNPC Ltd’s recent adjustments to Premium Motor Spirit (PMS) also known as petro prices were designed to hinder DRL from offering lower prices and that NNPC Ltd had become the sole off taker for all products from DRL.
In its response, NNPC Ltd in a statement issued at the weekend by its spokesperson, Olufemi Soneye, clarified that that petroleum product prices, including those from DRL, are influenced by global market forces.
NNP noted that it’s open to lower prices of petrol as determined by any domestic refinery.
It also said that DRL and other domestic refineries were free to sell directly to marketers under a willing buyer, willing seller basis, reflecting the deregulated nature of the market.
The statement entitled “NNPC Ltd Not the Sole Off taker; Market Open to Lower Prices from Any Domestic Refinery,” read: “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 had become the sole off taker 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. 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.
“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 off take 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.
“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.”
