No Monopoly on Dangote Refinery’s Products- NNPC Ltd

Oru Leonard 

In a recent press release, the Muslim Rights Concern (MURIC) alleged that the Nigerian National Petroleum Company Limited (NNPC Ltd), was undermining the Dangote Refinery Limited (DRL) by controlling the market and preventing the refinery from offering lower prices. However, NNPC Ltd has come out to set the record straight.

According to NNPC Ltd, ‘the pricing of petroleum products is determined by global market forces, and the recent changes in PMS prices have no impact on DRL’s access to the Nigerian market. In fact, the current high prices present an opportunity for DRL to sell its products at lower prices.”

NNPC Ltd emphasized that there is no guarantee of lower prices from domestic refining compared to global parity pricing. The company will only fully offtake PMS from DRL if market prices are higher than pump prices in Nigeria. Otherwise, DRL is free to sell directly to any marketer on a willing buyer, willing seller basis.

NNPC Ltd also clarified that it has no desire or intention to become the sole distributor for DRL or any other entity in a free market environment. The company holds a billion-dollar stake in DRL and would not undermine its own investment.

NNPC Ltd urged MURIC to verify facts before making statements that could incite ordinary Nigerians against the company. With this clarification, the record is set straight, and the market is open for DRL to offer competitive prices.