Petrol Price Hike: Don’t Blame Us, It’s ‘Market Forces’, NNPCL Tells Nigerians

The Nigerian National Petroleum Company Limited , NNPCL ,has  denied being responsible for the recent petrol price hike in the country  submitting that this was  rather due to ‘market forces’.

NNPCL also noted that market forces will also determine the selling price of products produced by the refineries  including Dangote Refinery Ltd noting that no one can assert that  there will be reduction in pump price of petrol.

Team@orientactualmags.com  learned that the NNPCL  disclosed this in a statement issued by its  Chief Corporate Communications Officer, Olufemi Soneye on Saturday which was titled ‘NNPC Ltd Not the Sole Offtaker; Market Open to Lower Prices from Any Domestic Refinery’.

This was done in reaction to the statement earlier issued by the Muslim Rights Concern, MURIC.

 ‘The attention of the NNPC Ltd has been drawn to the press release issued by the Muslim Rights Concern, MURIC, which claimed that the Dangote Refinery Limited (DRL) is being undermined by actions of the Nigerian National Petroleum Company Limited (NNPC Ltd).

Specifically, MURIC asserted that recent changes in respect of 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 off-taker of all products from the refinery.

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’ the statement said.

NNPCL also added ‘that there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL’ while noting that it has no plans to  become the distributor for any entity in a free market environment.

‘The NNPC Ltd. will only fully off take 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 off-taker does not arise.

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’ the statement added-Team@orientactualmags.com  Do you have any information you wish to share with us? Do you want us to cover your event or programme? Kindly send SMS to 08059100286, 09094171980 or get in touch via orientactualmag@gmail.com.  Thank you