The Nigerian National Petroleum Company Limited (NNPC Ltd) has recently addressed and refuted claims made by the Muslim Rights Concern (MURIC) regarding the operational status of the Dangote Refinery. The NNPC Ltd. has asserted that it does not engage in any activities that would undermine the Dangote Refinery and emphasized that the market remains open for competitive pricing from any domestic refinery.
This response comes in light of allegations from MURIC, which raised concerns over recent adjustments to the price of Premium Motor Spirit (PMS). MURIC’s Executive Director, Professor Ishaq Akintola, has criticized these changes, suggesting they might restrict the Dangote Refinery’s ability to offer more competitive prices. In their statement, MURIC urged the Nigerian government to ensure that the Dangote Refinery is allowed to operate without constraints and to protect it from any form of market manipulation.
MURIC further accused NNPCL of becoming the sole purchaser of all products produced by the Dangote Refinery, thereby monopolizing the market and potentially stifling competition.
In response, Olufemi Soneye, the Chief Corporate Communications Officer at NNPCL, issued a comprehensive statement addressing these concerns. Soneye emphasized that the pricing of petroleum products, including those from the Dangote Refinery, is influenced by global market dynamics rather than any internal policies or biases. He clarified that the recent adjustments in PMS pricing do not impact the ability of the Dangote Refinery or any other domestic refinery to access the Nigerian market.
Soneye elaborated that there is no inherent advantage in domestic refining that guarantees lower prices compared to global pricing structures. The NNPC Ltd. will only fully offtake PMS from the Dangote Refinery if the local market prices are higher than those internationally. This approach aligns with the principle of market freedom, allowing the Dangote Refinery, as well as other domestic refineries, to sell their products directly to marketers on a “willing buyer, willing seller” basis. This practice is consistent with the current deregulated environment for petroleum products.
The statement from NNPC Ltd. highlights that, as a significant stakeholder with substantial financial investments in the sector, the organization is committed to maintaining fair and transparent market practices. Soneye criticized the lack of fact-checking by MURIC and stressed the importance of accurate information in public discourse. He underscored that the NNPC Ltd. cannot afford to undermine a business with which it has a considerable financial stake.
To further clarify, NNPC Ltd. reaffirms that the Dangote Refinery, along with other domestic refineries, operates within a competitive market framework. The company is dedicated to fostering a fair and open market environment where refineries can operate and compete effectively. The assurance from NNPC Ltd. serves to dispel any misconceptions and reaffirm their commitment to market integrity and transparency.
In summary, NNPC Ltd. emphasizes its stance on fair competition and market accessibility for all refineries, including the Dangote Refinery. The organization’s response aims to provide clarity and correct any misunderstandings, reinforcing its commitment to fair market practices and the well-being of the petroleum sector.