The recent changes in PMS prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market.
The Nigerian National Petroleum Company Limited (NNPCL) has claimed that the current price of Premium Motor Spirit (PMS), popularly known as fuel in Nigeria is determined by global market forces and not domestic refinery’s access to the Nigerian market.
The Nigeria’s oil firm said this in a statement issued on Saturday by its Chief Corporate Communications Officer, Olufemi Soneye, while reacting to a claim by the Muslim Rights Concern (MURIC), that the Dangote Refinery Limited (DRL) is being undermined by actions of the NNPCL.
MURIC had said that recent changes to the pump price of fuel would prevent the Dangote Refinery from offering lower prices and that NNPC Ltd. has become the sole offtaker of all products from the refinery.
However, Soneye said, “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.
“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.
“Furthermore, we emphasise 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.
“The NNPC Ltd. cannot undermine a business in which it holds a billion-dollar stake.
“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.”
Days ago, SaharaReporters had reported that Aliko Dangote, Nigerian top businessman, disclosed that the retail price of the petroleum products from his refinery in Lagos State would be determined by the Nigerian government under the leadership of President Bola Tinubu.
Dangote had made this known while unveiling his product on Tuesday, assuring that his refinery would end the fuel scarcity in the country.
Speaking on the retail prices, Dangote had stated, “It is an arrangement which is designed and approved by the Federal Executive Council led by President Bola Tinubu.
“As soon as it is finalised, which he (Tinubu) is pushing, once we finish with NNPC, it can be today, it can be tomorrow, we are ready to roll into the market.”
