NNPC Disputes Claims of Hijacking Dangote Refinery’s Products, Highlights Market Forces

In response to recent claims, the Nigerian National Petroleum Company Limited (NNPC) has denied any involvement in the recent hike in premium motor spirit, commonly known as petrol, in Nigeria. According to the company, the pricing of petroleum products from any refinery, including the Dangote Refinery Ltd, is determined by global market forces, not by any internal efforts.

The NNPC stated this in a press release, titled "NNPC Ltd Not the Sole Offtaker; Market Open to Lower Prices from Any Domestic Refinery," issued on Saturday. In the statement, Chief Corporate Communications Officer Olufemi Soneye emphasized that "there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL."

The company responded to a press release by the Muslim Rights Concern, MURIC, which alleged that the NNPC is attempting to monopolize the offtake of all products from the Dangote Refinery Ltd. NNPC disputed this claim, stating that "the recent changes in PMS prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market." If current prices are perceived as high, it presents an opportunity for the refinery to sell its products at lower prices in the Nigerian market, the company emphasized.

NNPC further explained that it will only fully offtake PMS from the DRL if market prices of PMS are higher than pump prices in Nigeria. The 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.

The company also emphasized that it cannot undermine a business in which it holds a billion-dollar stake, adding that MURIC should have verified the facts before making statements that are entirely flawed and have the potential to incite ordinary Nigerians against the NNPC Ltd.

In its defense, NNPC urged all parties to rely on credible sources of information rather than rumors and speculations, stressing that transparency and trust are essential in business relationships.