NNPC Ltd Not the Sole Offtaker; Market Open To Lower Prices From Any Domestic Refinery

Posted on September 8, 2024

The NNPC Ltd said its attention has been drawn to a press release by the Muslim Rights Concern, MURIC, which claimed that the Dangote Refinery Limited (DRL) is being undermined by actions of the Nigerian National Petroleum Company Limited (NNPC Ltd).

 

Specifically, MURIC asserted that recent changes to the pump price of Premium Motor Spirit (PMS) will prevent the Dangote Refinery from offering lower prices and that NNPC Ltd. has become the sole offtaker of all products from the refinery.

 

To set the records straight, NNPC Ltd., through Olufemi Soneye, Chief Corporate Communications Officer, stated as follows:

1. The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd. (DRL), is determined by global market forces. The recent changes in PMS prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market. In fact, if current prices are perceived as high, it presents an ideal opportunity for the refinery to sell its products at lower prices in the Nigerian market.

 

2. Furthermore, we emphasize 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 NNPC Ltd. will only fully offtake PMS from the DRL if the market prices of PMS are higher than the pump prices in Nigeria. The DRL and any other domestic refinery are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products. NNPC Ltd. has no desire or intention to become the distributor for any entity in a free market environment, and therefore, the notion of becoming a sole offtaker does not arise.

 

3. The NNPC Ltd. cannot undermine a business in which it holds a billion-dollar stake.

 

4. As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and has the potential to incite ordinary Nigerians against the NNPC Ltd.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

The Ministry of Solid Minerals Development is probing the claims and counter-claims of Osun... Continue
President Bola Tinubu has sent condolences to the Government and people of Niger State... Continue
ROSE ORANYE  Anambra State Commissioner for Information, Dr. Law Mefor, has described Governor Chukwuma... Continue
Amara Nwuneli, a Nigerian founder of the youth-led climate education NGO ‘Preserve Our Roots’, won... Continue
October 1 in Nigeria is synonymous with the commemoration of the country’s Independence, for... Continue
IZUCHUKWU ADICHIE  For the past 30 months, the Soludo administration has been focused on... Continue
President Bola Ahmed Tinubu has conferred the nation’s second highest national honour, the Grand... Continue
The Honourable Minister of Sports Development, Senator John Owan Enoh, held a meeting with... Continue
  At HP Imagine, the company’s yearly event for media and analysts from across... Continue

UBA


Access Bank

Twitter

Sponsored