Dangote Refinery free to sell petrol directly to marketers – NNPCL

The Nigerian National Petroleum Company Ltd (NNPCL) has dismissed allegations of monopolistic control over the supply of petroleum products in Nigeria, stating that Dangote Refinery and other domestic refiners are free to sell directly to any marketer on a “willing buyer, willing seller” basis. This response comes in the wake of accusations from the Muslim Rights Concern (MURIC), which claimed that the NNPCL was hiking fuel prices to sabotage Dangote Refinery’s efforts to reduce petroleum product costs.

MURIC, through its Executive Director, Professor Ishaq Akintola, had urged NNPCL to allow Dangote Refinery to operate without interference, accusing the national oil company of unfair practices that could harm the market.

However, Olufemi Soneye, Chief Corporate Communications Officer at NNPCL, rejected MURIC’s assertions, labeling them as “entirely flawed” and cautioning against narratives that could incite public discontent against the company. Soneye clarified that the pricing of petroleum products from any refinery, including Dangote Refinery, is governed by global market forces, and the NNPCL does not seek to monopolize or control domestic supply.

“The recent changes in Premium Motor Spirit (PMS) prices have no impact on the access of Dangote Refinery or any other domestic refinery to the Nigerian market,” Soneye explained. “In fact, if current prices are perceived as high, this is an opportunity for local refiners to provide products at more competitive rates.”

He further emphasized that domestic refiners, including Dangote, have full autonomy to market their products independently, and the NNPCL has no desire to become the sole distributor in a free market environment. “NNPC Ltd will only fully offtake PMS from the Dangote Refinery if market prices are higher than the pump prices in Nigeria,” Soneye added, noting that the NNPCL’s billion-dollar investment in the refinery aligns with its commitment to a competitive and open market.

Soneye urged advocacy groups like MURIC to ensure accurate information before making public statements that could mislead and incite the public. He reaffirmed that the NNPCL’s role is to support a fair market where domestic and global market forces determine pricing, dismissing any allegations of undue interference in the operations of Dangote Refinery or other market players.

This clarification highlights the NNPCL’s stance on promoting a deregulated petroleum market, where local refineries have the freedom to contribute to price stability without facing constraints from national entities.