Dangote Refinery: No Guarantee of Lower Petrol Prices - NNPCL Says

The Nigerian National Petroleum Company Limited (NNPCL) has addressed recent claims regarding the impact of the Dangote Refinery on petrol prices in Nigeria.

In a statement released on September 7, 2024, NNPCL clarified that it is not responsible for the recent hike in Premium Motor Spirit (PMS), commonly known as petrol, and emphasized that the pricing of petroleum products from any refinery, including the Dangote Refinery, is determined by global market forces.

Olufemi Soneye, Chief Corporate Communications Officer of NNPCL, responded to allegations made by the Muslim Rights Concern (MURIC) that the NNPCL's actions are undermining the Dangote Refinery.

MURIC had suggested that recent changes in the pump price of PMS would prevent the Dangote Refinery from offering lower prices and accused NNPCL of monopolizing the offtake of all products from the refinery.

Soneye stated, "The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd. (DRL), is determined by global market forces." He further explained that there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL.

NNPCL also highlighted that 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," Soneye added.

The company reiterated that it has no intention of becoming the sole distributor for any entity in a free market environment. "NNPCL 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," Soneye clarified.

NNPCL concluded by stating that it cannot undermine a business in which it holds a billion-dollar stake and urged advocacy groups like MURIC to verify facts before making statements that could incite public sentiment against the company.