Contrary to the speculations in several quarters that the coming of Dangote Refinery would shoot down the pump price of petrol, Nigerian National Petroleum Company Limited (NNPCL) has said that there is no guarantee that the product would be sold cheaper.
This is as the corporation also denied claims that it was responsible for the recent hike in the price of petrol in the country.
The company said the pricing of petroleum products from any refinery, including the Dangote Refinery Ltd, is determined by global market forces, stating that there is no guarantee of lower prices associated with domestic refining of the products in the country.
The NNPC stated this on Saturday in reaction to rumours it is attempting to monopolise the offtake of all products from the Dangote refinery.
In the statement titled “NNPC Ltd Not the Sole Offtaker; Market Open to Lower Prices from Any Domestic Refinery”, the company’s Chief Corporate Communications Officer, Olufemi Soneye, said, “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 off-taker of all products from the refinery.”
Punch reports that the company said to set the records straight, “The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd. (DRL), is determined by global market forces.”
NNPC said, “The recent changes in PMS prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market,” adding that “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 NNPC further emphasised “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 off-taker does not arise,” it said.
The NNPC said it 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,” the company said.
In a statement by its founder and Executive Director, Professor Ishaq Akintola on Friday, MURIC urged the Federal Government to give the refinery a free hand to operate and protect it from strangulation.
MURIC said, “In view of the severe hardship facing Nigerians, in view of the fact that the masses have placed their hope in the likelihood of a drastic fall in the price of petroleum products once the Dangote Refinery starts functioning and in the face of the devastating blow delivered by the Nigerian National Petroleum Corporation (NNPC) by suddenly raising the price of its fuel and banning Dangote Refinery from supplying any other marketer except NNPC, we, the Muslim Rights Concern (MURIC), concerned for the plight of poor Nigerians, went on a fact-finding mission to Dangote refinery.
“Seventeen members of our organization visited the newly completed Dangote Refinery at Ibeju-Lekki, Lagos State. Authorities of the refinery granted our request to enter the premises on self-recognition. The visit took place yesterday, Thursday, 5th September 2024.
“Although full details of our findings will be disclosed in a press conference to be addressed very soon, we are constrained to issue an advance statement as a precursor to the press conference.”
It said “Nigerians are going through severe hardship. There is hunger in the land. Inflation has made life difficult for many, particularly after the removal of fuel subsidy which shot the price of petrol to the rooftop.
“But Nigerians were assured of coming relief as they were told that the price of petrol would reduce drastically when Dangote Refinery started to function.
“But we were shocked to our marrows when NNPC suddenly announced an upward review of petrol from N617 to N897. This happened on Saturday, 31st August 2024 ( just 24 hours before the commencement of full operations by Dangote Refinery).”
It added “To make matters worse, NNPC made itself the only marketer of Dangote fuel thereby sandwiching the latter’s product. By taking these two actions, NNPC has effectively taken control of Dangote’s fuel and the real owner cannot determine the price of its own product. This is an ambush, a punch below the belt.
“If NNPC had not increased the price of its own fuel, the decision to monopolise Dangote’s fuel would have favoured the hoi polloi, but by increasing the price and restricting the supply of Dangote’s fuel to itself alone, NNPC has rendered Dangote Refinery helpless.
“MURIC finds NNPC’s action to be anti-people, immoral and lacking in conscience. It is an open secret that the prices of most products, particularly food items, are tied to the umbilical cords of petroleum and its price. The latter is the engine room that moves the economy.
“There is also no gainsaying the fact that Nigerians are hungry today because the price of petrol skyrocketed and the prices of foodstuffs rose astronomically and spontaneously.”
The group continued, “Nigerians became hungry and justifiably angry. Protests erupted North and South of the country. MURIC was among the patriotic groups that appealed to Nigerians to simmer down. Nigerians were told that the price of petrol would crash when Dangote Refinery came on board.
“But NNPC has shattered the hope of the jamaahiir (masses) by raising the price of petrol and disallowing other marketers from buying from Dangote Refinery. This is against the spirit of free economy. It contravenes natural law of justice. It is not fair. What was the contribution of NNPC to the new refinery?
“How can NNPC suddenly take full control of Dangote Refinery, the hope
of the masses to whose process it contributed virtually nothing?
“We charge NNPC to retrace its steps on this matter. It is too sensitive. Nigerians had placed their hopes on a fait accompli status of Dangote’s fuel to reduce hardship. This refinery must not be strangulated.”
It added “Besides, NNPC’s recent actions appear to stand in contradistinction with the policy of this administration. President Bola Ahmed Tinubu gave Nigerians his word that Dangote Refinery would be encouraged to realize its full potential. Who is NNPC working for, Tinubu or his detractors?
“NNPC must not allow fifth columnists whose wish is to bring down the Tinubu-Shettima administration to have their way. NNPC should know that frustrating Nigerians is one of the fastest ways to bring a regime to a premature end.
“We therefore charge NNPC to go back to its old price. NNPC must also leave Dangote Refinery alone to operate at its maximum capacity, supply freely to marketers and fix its own prices as expected in a truly free market economy.”
The group said “President Bola Ahmed Tinubu supported the supply of crude oil to Dangote Refinery with payment in naira but our team discovered during the visit that crude oil is yet to be supplied. This is alarming. Is it still the cabal? We thought Tinubu had demystified the myth of the cabal.
“The world is watching and laughing at a nation that has garments yet walking about naked. As the father of the nation, President Tinubu must ensure that Nigeria does not dance naked in the global marketplace.”
