WE’RE NOT UNDERMINING DANGOTE, NNPCL REPLIES MURIC
Read Time:2 Minute, 43 Second
The Nigeria National Petroleum Company Limited (NNPC Ltd) has refuted allegations made by the Muslim Rights Concern (MURIC) that the company is hindering Dangote’s ability to operate freely, claiming that the private refinery cannot set its own prices because the NNPCL has positioned itself as the sole marketer of Dangote’s fuel.
In a statement on Friday, MURIC’s Executive Director, Professor Ishaq Akintola, accused the NNPCL of increasing fuel prices and “restricting the supply of Dangote’s fuel to itself (NNPCL) alone,” which, he said, had left Dangote Refinery helpless, describing the move as an “ambush and punch below the belt.”
Reacting to MURIC allegations, NNPCL in a statement signed by its Chief Corporate Communications Officer (CCCO), Olufemi Soneye, on Saturday, clarified that the pricing of petroleum products from any refinery, including the Dangote Refinery Ltd (DRL), is determined by global market forces.
It added that recent changes in PMS prices have no effect on the Dangote Refinery or any other domestic refinery’s access to the Nigerian market.
Soneye further stated that there is no assurance of lower prices associated with domestic refining compared to global parity pricing frameworks, as confirmed by the Dangote Refinery.
The statement urged MURIC to verify its facts before releasing information to the public.
“The attention of the NNPC Ltd has been drawn to a press release by the Muslim Rights Concern, MURIC, which claims that the Dangote Refinery Limited (DRL) is being undermined by actions of the Nigerian National Petroleum Company Limited (NNPC Ltd).
“Specifically, MURIC asserts that recent changes to the pump price of Premium Motor Spirit (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.
“To set the record straight, NNPC Ltd 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 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 have the potential to incite ordinary Nigerians against the NNPC Ltd,” the statement concluded.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
100 %
0
0