NNPCL: We Are Not Sole Off Taker of Petrol from Dangote Refinery
Emmanuel Addeh in Abuja
The Nigerian National Petroleum Company Limited (NNPCL) Saturday appeared to have countered a statement by the Dangote Refinery that the national oil company will be the sole off taker of its petrol.
Dangote Refinery had recently announced the commencement of production of petrol, positioning the NNPC as its first sole buyer.
The Vice-President at the Dangote Industries Limited (DIL), Devakumar Edwin, had mentioned during the week that the national oil company was prepared to purchase its products exclusively to meet local demand.
But there had been concerns that the NNPCL’s interest in becoming the refinery’s sole buyer carries potential risks that could undermine the principles of a free market, as well as competition and further stifle the market.
But in a statement signed by the Chief Corporate Communications Officer, NNPC, Olufemi Soneye, the national oil company said that the insinuation runs contrary to its own position.
Specifically, it referenced public comments by the Muslim Rights Concern (MURIC) which it said claimed that the Dangote Refinery was being undermined by the actions of the NNPCL.
“To set the records straight, NNPC wishes to further state as follows: The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd (DRL), is determined by global market forces.
“The recent changes in Premium Motor Spirit (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 statement stressed.
The NNPC said it will only fully offtake petrol from the Dangote Refinery if the market prices of the product 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 off taker does not arise,” the oil company stated.
Details later…
