Dangote Refinery: No guarantee of lower prices – NNPCL
The Nigeria National Petroleum Company Ltd (NNPCL) has clarified that there is no assurance of reduced petrol prices as it prepares to commence lifting petrol from the Dangote Refinery.
NNPCL is set to begin lifting petrol from the refinery on September 15, 2024. However, in a statement released on Saturday by the company’s spokesman, Olufemi Soneye, NNPCL made it clear that the pricing of petroleum products from any refinery, including the Dangote Refinery Ltd (DRL), is influenced by global market forces.
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“There is no guarantee of lower prices associated with domestic refining of the products,” Soneye, who is the Chief Corporate Communications Officer of NNPCL, said. He further emphasized that the price of petroleum products from any refinery is subject to these global market trends, thus dispelling expectations that the Dangote Refinery’s operations would automatically lead to cheaper petrol prices.
Soneye’s statement was issued in response to rumours suggesting that NNPCL was attempting to monopolise the distribution of products from the Dangote Refinery. This speculation arose following a press release by the Muslim Rights Concern (MURIC), which claimed that NNPCL’s recent changes to the pump price of Premium Motor Spirit (PMS) would hinder the Dangote Refinery’s ability to offer competitive pricing. MURIC also alleged that NNPCL had become the exclusive offtaker of all products from the refinery.
In addressing these allegations, Soneye reassured the public that global market dynamics would continue to determine the prices of petroleum products, irrespective of where they are refined.
The Dangote Refinery, which is set to start contributing 25 million litres of petrol daily to the Nigerian market, has been highly anticipated by many as a potential solution to Nigeria’s fuel price instability. However, NNPCL’s recent statement highlights that global factors, not just domestic production, will continue to influence pricing.
