The Nigerian National Petroleum Company Limited (NNPC Ltd.) has addressed recent claims made by the Muslim Rights Concern (MURIC) regarding its relationship with the Dangote Refinery Limited (DRL). MURIC alleged that NNPC Ltd. is undermining DRL’s ability to offer competitive prices and that it has become the sole offtaker for the refinery’s products.
In response, NNPC Ltd. issued a statement clarifying several key points:
1. Market-Driven Pricing: NNPC Ltd. emphasized that the pricing of petroleum products from any refinery, including DRL, is dictated by global market forces. Recent adjustments in the pump price of Premium Motor Spirit (PMS) do not affect DRL’s ability to sell its products at competitive prices.
The company stated that if current market prices are perceived as high, this could actually provide DRL with the opportunity to offer lower prices in the Nigerian market.
2. No Sole Offtaker Status: The statement underlined that NNPC Ltd. does not hold the status of a sole offtaker for DRL’s products. Domestic refineries, including DRL, are free to engage in direct sales to any marketer based on a willing buyer, willing seller principle. NNPC Ltd. will only purchase PMS from DRL if market conditions warrant, specifically if domestic prices exceed global pricing benchmarks.
3. No Undermining Intent: NNPC Ltd. refuted claims of undermining DRL, emphasizing that it cannot undermine a business in which it holds significant investments. The company reassured that it has no intention of monopolizing the distribution of products in a deregulated market.
4. Call for Fact Verification: NNPC Ltd. criticized MURIC for what it described as flawed statements and urged the advocacy group to verify facts before making public claims. The company expressed concern that misinformation could incite public unrest against NNPC Ltd.
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The response from NNPC Ltd. seeks to clarify its position and dispel misunderstandings regarding its role and operations in the domestic oil market.
