The Nigerian National Petroleum Company Limited (NNPC Ltd.) has clarified that it has no intention of becoming the sole off-taker of Dangote Refinery Limited (DRL) or any other entity in a free market environment.
Mr. Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., made this statement on Saturday in Abuja in response to claims by the Muslim Rights Concern (MURIC) that NNPC Ltd.’s actions were undermining the Dangote Refinery. MURIC had asserted that recent changes in the pump price of Premium Motor Spirit (PMS) would prevent the Dangote Refinery from offering lower prices and that NNPC Ltd. had become the sole off-taker of all products from the refinery.
Soneye clarified that petroleum product pricing, including that of Dangote Refinery, is determined by global market forces, and the recent changes in PMS prices do not affect the refinery’s access to the Nigerian market. He further emphasized that in a fully deregulated environment, refineries, including Dangote, are free to sell directly to marketers based on a willing buyer, willing seller principle.
Soneye also noted that NNPC Ltd. would only fully off-take PMS from Dangote Refinery if market prices were higher than pump prices in Nigeria and reiterated that NNPC Ltd. has no intention of becoming the exclusive distributor in a
