NNPC Sends Message to Nigerians, Speaks on Being Sole Buyer of Dangote Petrol, Gives New Condition
- The Nigerian National Petroleum Company Limited (NNPC) has said that the Dangote Refinery is free to sell to any marketer
- The company disclosed this as it responded to a Muslim group which claimed that NNPC wants to undermine the Dangote Refinery
- The NNPC said it can only become the sole buyer of Dangote petrol if market prices are higher than pump prices in Nigeria
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian National Petroleum Company Limited (NNPC) has said that the Dangote Refinery and any other local refinery can sell directly to marketers on a willing buyer, willing seller terms.
The national oil firm disclosed that it is the practice for deregulated products, stating that it has no plan of becoming the sole distributor for any entity in a free market. Therefore, the notion of a sole off-taker for Dangote Refinery does not arise.
Source: UGC
NNPC says Dangote is free to sell to marketers
The company’s Chief Corporate Communications Officer, Olufemi Soneye, disclosed this as he responded to a Muslim group, the Muslim Rights Concern (MURIC), which said that the Dangote Refinery Limited (DRL) is being undermined by the actions of the NNPC
Soneye said that MURIC said that recent changes to fuel pump prices would prevent the Dangote Refinery from offering lower petrol prices to Nigerians as the NNPC became the sole buyer of all products from the refinery.
According to the NNPC, it will only fully offtake petrol from the Dangote refinery if market prices are higher than pump prices in Nigeria, stating that Dangote and any other refinery are free to sell directly to any marketer on a willing buyer, willing seller basis.
The statement reads:
“NNPC Ltd has no desire or intention to become the distributor for any entity in a free market environment; therefore, the notion of becoming a sole off-taker does not arise.
“The NNPC Ltd cannot undermine a business with a billion-dollar stake. As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and have the potential to incite ordinary Nigerians against the NNPC Ltd.”
Dangote Refinery produces new petrol-grade
This development comes as Aliko Dangote, President of Dangote Industries Limited, has said that with the rollout of the PMS from the Dangote Petroleum Refinery, Nigerians will understand the country's fuel consumption for the first time.
The petrol production from the 650,000bpd-capacity refinery comes 28 years after Africa’s largest oil producer stopped PMS production from its three moribund refineries.
New grade to improve health and the environment
Dangote stated that the new petrol would improve everyone's health and ensure that Nigerians know there is a consistent supply to the market.
The Nigerian billionaire said that petrol will also correct the distortion of the naira, bringing stability to the local currency, development, and prosperity.
According to Vortex data, Dangote’s petrol production will impact billions of dollars of trade in regional fuel markets. Nigeria is a global fuel market, receiving almost 250,000 barrels daily in shipments in 2023, mainly from Europe.
Dangote to set own petrol prices
Legit.ng previously reported that there are signs that the Nigerian government is considering granting the Dangote Refinery the autonomy to set petrol prices.
According to a Bloomberg report on Thursday, September 5, 2024, the Nigerian government is considering letting the facility set the price at which it sells petrol to Nigerians.
The report quoted sources as saying that Nigeria will allow Dangote to set petrol prices for marketers starting October, the same month the Nigerian government will sell crude oil to domestic refineries in the local currency.
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Source: Legit.ng
