The Nigerian National Petroleum Company Limited (NNPCL) has denied allegations suggesting that it is the exclusive off-taker of petrol from the Dangote Refinery and is also undermining its ability to offer lower prices.
In a press statement released on September 7, 2024, Olufemi Soneye, Chief Corporate Communications Manager at NNPC, responded to these claims that the national oil company’s actions prevent the Dangote Refinery from selling petrol at more affordable rates.
NNPC’s statement clarified that petroleum product prices, including those from the Dangote Refinery, are set by global market forces, and recent fluctuations in the price of Premium Motor Spirit (PMS) do not affect the refinery’s market access. The company emphasized that there is no guarantee that domestic refining will result in lower prices compared to global market rates.
“NNPC Ltd has no intention of becoming the sole distributor of petrol from Dangote Refinery or any other entity,” the statement read. “The pricing of petroleum products is determined by global market dynamics, and there is no assurance that domestic refining will lead to lower prices compared to international standards.”
The company also noted that it will only fully offtake petrol from the Dangote Refinery if market prices exceed current Nigerian pump prices. NNPC further stated that the Dangote Refinery, like any other domestic refinery, is free to sell directly to marketers on a willing buyer, willing seller basis, consistent with the deregulated market practices.
Additionally, NNPC highlighted that it holds a substantial financial stake in the Dangote Refinery, estimated at up to $1 billion, arguing that undermining the business would be counterproductive.
