Market open to lower prices from any domestic refinery, NNPC replies MURIC

Nigerian National Petroleum Company Limited (NNPC Ltd) has said market of Premium Motor Spirit (PMS) or petrol is open to lower prices from any domestic refinery, stating that price is determined by global market forces.

The Chief Corporate Communications Officer, NNPC Ltd, Mr. Olufemi Soneye responding to Muslim Rights Concern (MURIC) claims that the Dangote Refinery Limited (DRL) is being undermined by actions of the Company, said the recent changes in PMS prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market.

MURIC asserts that recent changes to the pump price of PMS will prevent the Dangote Refinery from offering lower prices and that NNPC Ltd has become the sole offtaker of all products from the refinery.

NNPC stated that 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.

 NNPC emphasized that there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL.

Soneye  in his statement said, “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.”