The Nigerian National Petroleum Company Limited (NNPC Ltd.) has dismissed allegations made by the Muslim Rights Concern (MURIC) that it is monopolizing the purchase of products from the Dangote Refinery Limited (DRL) and undermining its operations.
In a statement issued on Saturday by Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, the company addressed concerns over recent changes in the pump price of Premium Motor Spirit (PMS).
MURIC had claimed that these price adjustments would prevent the Dangote Refinery from offering competitive rates, accusing NNPC Ltd. of being the sole buyer of DRL’s output.
However, NNPC Ltd. clarified that the pricing of petroleum products from any refinery, including DRL, is primarily dictated by global market dynamics.
The recent hike in PMS prices, according to the company, does not restrict DRL or other local refineries from accessing the Nigerian market. Instead, higher market prices create opportunities for refineries to offer competitive rates domestically.
The NNPC further noted that domestic refining offers no inherent advantage over global parity pricing. It stated that NNPC Ltd. would only fully purchase PMS from DRL if domestic prices surpass global pump prices.
Additionally, DRL and other refineries are free to sell their products to any marketer on a “willing buyer, willing seller” basis, underlining that the company has no intention of acting as the sole distributor in a deregulated market.
The NNPC emphasized that the claim of being the sole offtaker is baseless, as it does not intend to monopolize the refinery’s output. Furthermore, NNPC Ltd. reminded the public that it cannot undermine a business in which it has a significant financial stake.
The company urged MURIC to verify its facts before making misleading statements that could incite public dissatisfaction.
