The Nigerian National Petroleum Company Limited (NNPC) has refuted claims by the Muslim Rights Concern (MURIC) that it is undermining the Dangote Refinery’s ability to offer lower prices for petroleum products. NNPC stated that the market is open for lower prices from any domestic refinery and that the pricing of petroleum products is determined by global market forces.
MURIC had accused NNPC of preventing the Dangote Refinery from offering lower prices due to recent changes in the pump price of Premium Motor Spirit (PMS). However, NNPC clarified that the Dangote Refinery is 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 also emphasized that it cannot undermine a business in which it holds a billion-dollar stake. The company stated that it will only fully offtake PMS from the Dangote Refinery if the market prices of PMS are higher than the pump prices in Nigeria.
The statement by NNPC aims to set the records straight and provide clarity on the operations of the Dangote Refinery and the pricing of petroleum products in Nigeria. It also highlights the company’s commitment to ensuring a level playing field for all domestic refineries to operate and compete in the market.
