Fuel shortage: We are not sole distributor of Dangote Refinery products – NNPC
THE NNPC Ltd, a global energy company with businesses and operations across the entire spectrum of the energy value chain, has denied being the sole distributor of Dangote Refinery petroleum products.
The company said the pricing of petroleum products is determined by market forces, adding that recent changes in petrol prices have no impact on the Dangote Refinery Limited, DRL or any other domestic refinery’s access to the Nigerian market.
NNPC said that the Dangote Refinery and other domestic refineries are free to sell directly to any marketer on a willing buyer, willing seller basis.
In a statement obtained by Vanguard, Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye, stated: “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.
“Furthermore, we emphasize that there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL. 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. NNPC Ltd has no desire or intention to become the distributor for any entity in a free market environment, and therefore, the notion of becoming a sole offtaker does not arise.
“The NNPC Ltd cannot undermine a business in which it holds a billion-dollar stake. 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.”
