The Nigerian National Petroleum Company Limited (NNPC Ltd) has issued a response to recent claims made by the Muslim Rights Concern (MURIC), which alleged that the NNPC Ltd is deliberately undermining the operations of the Dangote Refinery Limited (DRL). MURIC’s concerns center on the recent changes to the pump price of Premium Motor Spirit (PMS), suggesting that the price adjustments would prevent the Dangote Refinery from offering lower prices and accusing the NNPC Ltd. of becoming the sole offtaker of DRL’s products.

In a statement signed by the Chief Corporate Communications Officer, Mr. Olufemi Soneye, NNPC Ltd. has unequivocally denied the allegations, stating that MURIC’s claims are unfounded and that the corporation remains committed to a free-market environment for petroleum products.

NNPC Ltd. emphasized that the pricing of petroleum products from any refinery, including the Dangote Refinery, is driven by global market dynamics. The company further clarified that the recent PMS price adjustments do not impede DRL or any domestic refinery’s access to the Nigerian market. Rather, NNPC Ltd. argues that if the current prices are perceived as high, this should create an opportunity for DRL to offer its products at more competitive rates within the Nigerian market.

“There is no automatic assurance of lower prices with domestic refining compared to global parity pricing, and the Dangote Refinery is free to sell its products directly to any marketer on a willing buyer, willing seller basis,” NNPC Ltd. stated.

NNPC Ltd. firmly dismissed claims that it has positioned itself as the sole offtaker of products from DRL. The company reiterated that it would only purchase PMS from DRL if global market prices exceeded the pump prices in Nigeria, and that it has no desire or intention to act as the sole distributor for any entity in a fully deregulated market.

“NNPC Ltd. cannot undermine a business in which it holds a billion-dollar stake,” the statement further read, underscoring the company’s vested interest in the success of the Dangote Refinery.

“Such flawed statements have the potential to mislead and incite ordinary Nigerians against the NNPC Ltd.,” Soneye added.