The Nigerian National Petroleum Company Limited (NNPC) has refuted claims by the Muslim Rights Concern (MURIC) alleging that NNPC is the sole off-taker of petrol products from the Dangote Refinery and that it is using its position to prevent the refinery from selling petrol at lower prices.
In a press statement signed by its Chief Corporate Communications Manager, Olufemi Soneye, NNPC addressed the concerns raised by MURIC, which suggested that the company’s actions were designed to hinder the refinery from offering Premium Motor Spirit (PMS) at more competitive prices.
The statement also alleged that NNPC had monopolised the purchase of products from the Dangote Refinery, News About Nigeria reports.
NNPC, in its response, clarified that the pricing of petroleum products, including those from Dangote Refinery, is determined by global market dynamics, not by the company’s influence.
It stressed that the recent fluctuations in PMS prices do not affect the refinery’s ability to operate in the Nigerian market or its capacity to compete with global pricing standards.
“NNPC will only offtake products from the Dangote Refinery if the global market prices are higher than current Nigerian pump prices,” the statement explained.
Additionally, NNPC said that domestic refining, including that from Dangote Refinery, does not guarantee lower prices than the global market rates.
Furthermore, NNPC stressed that the Dangote Refinery, like any other domestic refinery, is free to sell its products to any marketer under a “willing buyer, willing seller” model, which is standard practice for fully deregulated products.
NNPC also pointed out that it holds a substantial financial stake in the Dangote Refinery, valued at up to $1 billion, and thus undermining the refinery’s business would be counterproductive.
