NNPC Ltd Refutes MURIC Claims, Affirms Open Market for Lower Prices from Domestic Refineries

Segun Atanda/

The Nigerian National Petroleum Company Limited (NNPC Ltd) has refuted claims made by the Muslim Rights Concern (MURIC) that it is undermining the Dangote Refinery Limited (DRL).

MURIC alleged that recent changes to the pump price of Premium Motor Spirit (PMS) could prevent the DRL from offering lower prices and that the NNPC Ltd has assumed the position of sole offtaker for the refinery’s products.

In a press release issued by Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd, the company clarified that the pricing of petroleum products, including those from the DRL, is dictated by global market forces, not by NNPC Ltd. The statement emphasized that domestic refineries, including the DRL, have full access to the Nigerian market and the opportunity to offer lower prices if current prices are deemed high.

NNPC Ltd further highlighted that there is no guarantee of lower prices from domestic refineries due to the influence of global parity pricing frameworks. The company would only fully offtake PMS from DRL if the global market prices are higher than the domestic pump prices. Refineries like DRL are free to sell directly to marketers on a willing buyer, willing seller basis in a fully deregulated market.

Additionally, NNPC Ltd made it clear that it has no intention or desire to become the sole distributor for any refinery in a free market. The notion of becoming the sole offtaker, according to NNPC Ltd, does not arise, as all players in the market operate independently.

The statement also reminded the public that NNPC Ltd holds a significant billion-dollar stake in the DRL, making the idea of undermining the refinery unfeasible. NNPC Ltd urged MURIC, as an advocacy group for fairness, to verify facts before releasing potentially misleading statements that could cause unrest among Nigerians.

The company’s statement was issued to counter MURIC’s allegations and provide clarity on its operations and relationship with domestic refineries.