JUST IN: NNPC Clears Air on Dangote Refinery Monopoly Allegations
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The Nigerian National Petroleum Company Limited (NNPC) has denied allegations of monopolizing products from the Dangote Refinery, stating that it is not the sole buyer of petroleum products in Nigeria.
In a statement issued on Saturday by Olufemi Soneye, the Chief Corporate Communications Officer of NNPC, the company refuted claims that changes in the pump price of Premium Motor Spirit (PMS) would prevent the Dangote Refinery from offering competitive prices.
NNPC emphasized that it is not the sole buyer of petroleum products in Nigeria and that the market remains open for competitive pricing from any local refinery, including DRL.
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“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.”
The company also dismissed the claim that it is the sole offtaker of products from DRL, stating that domestic refineries are free to sell directly to any marketer on a “willing buyer, willing seller” basis.
“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.”
The NNPC assured the public that they hold no exclusive rights to distribute Dangote Refinery’s products and that their role in the market remains transparent and competitive.
“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.”
