The Nigerian National Petroleum Company Limited (NNPC) has strongly refuted allegations made by the Muslim Rights Concern (MURIC), which claimed that the NNPC is the exclusive buyer of petrol products from the Dangote Refinery and that it is manipulating this position to prevent the refinery from selling petrol at more competitive prices.
In an official press statement, signed by NNPC’s Chief Corporate Communications Manager, Olufemi Soneye, the company addressed these claims, dismissing them as baseless.
MURIC had previously suggested that NNPC’s exclusive rights as the sole off-taker of products from the Dangote Refinery would restrict the refinery from offering Premium Motor Spirit (PMS) at lower pump prices, effectively hampering the ability to pass on potential cost savings to Nigerian consumers.
In its clarification, the NNPC explained that the pricing of petroleum products, including those sourced from the Dangote Refinery, is largely influenced by global market conditions.
The company emphasized that fluctuations in PMS prices, both domestically and internationally, are dictated by these external market forces, and have no direct connection with the refinery’s capacity to operate within the Nigerian market.
The NNPC also clarified that there is no guarantee domestic refining of petroleum products would necessarily result in lower prices for consumers, as pricing will always be aligned with global market trends.
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According to the NNPC, it will only engage in the purchase of products from the Dangote Refinery when the refinery’s prices are higher than the current domestic pump prices.
This implies that the company’s procurement decisions will be driven by competitive pricing in the interest of Nigerian consumers, rather than any exclusivity arrangement.
Additionally, NNPC highlighted its substantial financial investment in the Dangote Refinery, amounting to approximately $1 billion.
Given this significant stake, the company stressed that any action to undermine the refinery’s operations would be counterproductive, as such an approach would directly impact NNPC’s own financial interests.
This investment underscores the NNPC’s vested interest in the success of the refinery, making the allegations of sabotage both illogical and unfounded.
In conclusion, the NNPC’s statement seeks to assure the public that its operations are governed by market dynamics, transparency, and the broader goal of ensuring energy security for Nigeria, rather than any attempt to stifle competition or manipulate prices.