NNPCL Clarifies: Fuel Prices Governed by Global Market Forces, Dangote Refinery Free to Set Prices
By Okafor Joseph Afam
The Nigerian National Petroleum Company Limited (NNPCL) has clarified that the current price of Premium Motor Spirit (PMS), commonly known as fuel, is determined by global market forces, and not by the access of domestic refineries, including the Dangote Refinery Limited (DRL), to the Nigerian market.
In a statement released on Saturday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, responded to allegations by the Muslim Rights Concern (MURIC) regarding NNPCL’s influence over the Dangote Refinery. MURIC had claimed that recent changes in fuel pump prices could hinder the Dangote Refinery from offering lower prices and that NNPCL had positioned itself as the sole offtaker of DRL’s products.
Soneye refuted these claims, stating that the pricing of petroleum products from any refinery, including DRL, is dictated by global market dynamics. “The recent changes in PMS prices have no impact on DRL or any other domestic refinery’s access to the Nigerian market. If current prices are seen as high, the Dangote Refinery has the opportunity to sell its products at lower prices,” he said.
The NNPC spokesperson also emphasized that lower prices are not guaranteed by domestic refining, as prices are typically aligned with global parity. NNPCL would only offtake PMS from the Dangote Refinery if the market prices are higher than the pump prices in Nigeria, allowing DRL and other refineries the freedom to sell directly to marketers on a willing buyer, willing seller basis.
He added that NNPC has no intention of becoming a sole distributor in a deregulated market and dismissed any suggestion of undermining the Dangote Refinery, noting that NNPCL holds significant financial stakes in the business.
Earlier, MURIC had raised concerns over NNPC’s role, suggesting it would obstruct DRL’s ability to offer competitive fuel prices. In contrast, Dangote himself reassured Nigerians that his refinery would alleviate fuel scarcity and that the pricing structure is being handled under an agreement with the Federal Executive Council, led by President Bola Tinubu.
