₦airaland Forum

NNPC Ltd Not the Sole Offtaker; Market Open to Lower Prices from Any Domestic Refinery

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 records straight, NNPC Ltd. wishes to further state as follows:

1. 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.

2. 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.

3. The NNPC Ltd. cannot undermine a business in which it holds a billion-dollar stake.

4. 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.

Olufemi Soneye
Chief Corporate Communications Officer
NNPC Ltd.
Abuja

7th September, 2024

Omooba77:
NNPC Ltd Not the Sole Offtaker; Market Open to Lower Prices from Any Domestic Refinery

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 records straight, NNPC Ltd. wishes to further state as follows:

1. 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.

2. 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.

3. The NNPC Ltd. cannot undermine a business in which it holds a billion-dollar stake.

4. 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.

Olufemi Soneye
Chief Corporate Communications Officer
NNPC Ltd.
Abuja

7th September, 2024

iwaeda:
Is this not what Dangote himself said. On MURIC stand this time. We mandately stand.

Omooba77:
It is well brother.....

EyeCumInPeace:
Fuel price from less than ₦200 to now more than ₦1000 all in less than 2yrs of Thïefnubu's regime.

Kai! I miss calamity Buhari.

MrBrownJay1:
they are already planning to sell Dangote's cheaper at higher price and STILL make a killing.

the above is called... PUTTING VASELINE BEFORE THEY RAPED YOU AGAIN!!!

DeLaRue:
I don't think so.

I think what is happening is that NNPC wants Dangote to announce its price by itself.

NNPC will buy at that price and sell to the public.

And if other buyers can also buy directly from Dangote, as the NNPC has now said, then no one can blame NNPC for pricing.

DeLaRue:
I don't think so.

I think what is happening is that NNPC wants Dangote to announce its price by itself.

NNPC will buy at that price and sell to the public.

And if other buyers can also buy directly from Dangote, as the NNPC has now said, then no one can blame NNPC for pricing.

Mr Dangote will not like this as whatever price he announces will not please the public.