The Nigerian National Petroleum Company Limited (NNPC) has firmly rejected allegations that it is responsible for the recent increase in the price of Premium Motor Spirit (PMS), commonly known as petrol. The company clarified that pricing for petroleum products, including those from the Dangote Refinery Ltd (DRL), is influenced by global market forces, not by NNPC’s actions.
In a statement released on September 7, 2024, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, addressed rumors propagated by the Muslim Rights Concern (MURIC). The organization had claimed that NNPC’s actions were hindering the Dangote Refinery’s ability to offer lower prices and accused NNPC of monopolizing the offtake of products from the refinery.
Soneye countered these assertions, emphasizing, “The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd, is subject to global market conditions. There is no assurance that domestic refining will automatically lead to reduced prices compared to international benchmarks.”
The NNPC underscored that the recent fluctuations in PMS prices do not affect the Dangote Refinery’s market access or pricing strategy. “Higher prices in the market could actually provide an opportunity for the Dangote Refinery to offer more competitive rates,” Soneye added.
Furthermore, the statement clarified that NNPC will only purchase PMS from the Dangote Refinery if domestic market prices exceed the current pump prices in Nigeria. The refinery and other domestic producers are free to engage in direct sales to any marketer on a voluntary basis.
The NNPC emphasized that it has no plans to monopolize distribution or act as the exclusive off-taker of refined products. The company criticized MURIC for spreading misinformation and urged the advocacy group to verify facts before making potentially inflammatory statements.
