The Nigerian National Petroleum Company Limited, NNPC Ltd, has denied claims that it is undermining the Dangote Refinery, insisting that the market is open for lower prices from any domestic refinery. ..Read Full Article
This comes after the Muslim Rights Concern (MURIC) alleged that the recent changes to the pump price of Premium Motor Spirit (PMS) will prevent the Dangote Refinery from offering lower prices.
In a statement by the Executive Director of the group, Professor Ishaq Akintola, MURIC urged the Nigerian government to give the refinery a free hand to operate and protect it from strangulation.
MURIC also accused NNPCL of becoming the sole offtaker of all products from the refinery.
However, in a statement by Olufemi Soneye, Chief Corporate Communications Officer, NNPCL said the pricing of petroleum products from any refinery, including the Dangote Refinery, is determined by global market forces.
NNPCL said it cannot undermine a business in which it holds a billion-dollar stake, noting that MURIC should have verified the facts before making statements that has the potential to incite ordinary Nigerians against the organization.
“To set the records straight, NNPC Ltd. wishes to further state as follows:
“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.
“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.
“The NNPC Ltd. cannot undermine a business in which it holds a billion-dollar stake,” the statement partly read…...Read Full Article
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