Must Read
The Nigerian National Petroleum Company Limited (NNPCL) has clarified that the Dangote Refinery and other local refineries in Nigeria are free to sell their products to any marketer, reinforcing the notion of a free market.
This statement follows discussions around whether the NNPC would be the sole distributor of petrol from the Dangote Refinery, which recently launched its products into the Nigerian market on September 3, 2024.
The NNPC indicated that while it expects to begin lifting products from the Dangote Refinery on September 15, 2024, it has no intention of becoming the exclusive off-taker of the refinery's output.
The national oil company, which holds a 7% stake in the Dangote Refinery, responded to concerns raised by the Muslim Rights Concern (MURIC) that the NNPC's involvement might hinder the refinery’s ability to offer competitive petrol prices to Nigerians.
Olufemi Soneye, Chief Corporate Communications Officer of NNPC, emphasized that the Dangote Refinery and others in Nigeria operate within a deregulated market, allowing them to sell directly to any marketer on a willing buyer, willing seller basis.
This clarification comes amidst rising petrol prices across Nigeria, with some states like Rivers and Kebbi reporting prices as high as N1,300 to N1,400 per liter, while in Abuja, the product was sold at N897 per liter as of September 6, 2024.
The NNPC’s position highlights the ongoing challenges in the energy sector, particularly in balancing market dynamics with consumer affordability.
