Dangote Refinery Capable of Lowering Product Prices, Says NNPC

According to NNPC, Dangote Refinery can adjust its pricing strategy to offer lower prices for its products in the market.

Contrary to allegations of the NNPC’s plans to exert control over the Dangote Refinery’s production, it has been confirmed by the Nigerian National Petroleum Company Limited (NNPC Ltd.) that The refinery possesses adequate flexibility in determining competitive pricing for its products.

The company stressed that it has no intention of becoming the sole buyer for Dangote Refinery Limited (DRL) or any other refinery in a deregulated market.

The NNPC Ltd. has stated that Nigerian refineries, including the Dangote Refinery, have the option to directly sell to marketers on a basis of “willing buyer, willing seller”. This method is consistent with current practices in deregulated petroleum product markets.

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Addressing concerns raised by the Muslim Rights Concern (MURIC), Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., provided these clarifications in Abuja.

The Dangote Refinery’s operations were reportedly being hindered by recent actions of NNPC Ltd. according to allegations made by the advocacy group.

According to Soneye, MURIC claimed that any changes in the pump price of Premium Motor Spirit (PMS) would impede Dangote Refinery’s ability to offer cheaper rates. Additionally, NNPC Ltd. is now the exclusive buyer of all goods produced by the refinery.

He explained that the cost of petroleum products from all refineries, Dangote’s included, is determined by international market dynamics. Furthermore, he confirmed that recent changes in PMS prices did not impact the refinery’s ability to supply Nigerian consumers.

Soneye pointed out that when individuals perceive current pump prices as high, it presents a chance for the refinery to offer their products at lower rates.

Additionally, he stated that Dangote Refinery recognized the fact that local refining does not necessarily ensure reduced prices in comparison to market rates influenced by global factors.

According to him, NNPC Ltd. is willing to purchase products from Dangote Refinery in full only if the market value of PMS surpasses Nigeria’s pump price. He emphasized that they do not have any intention of monopolizing distribution within a free-market environment and refuted claims about becoming an exclusive off-taker.

Soneye emphasized the significance of precise information in avoiding public deception and urged advocacy groups such as MURIC to fact-check prior to making any claims.