Market Forces and Fuel Pricing
The Nigerian National Petroleum Company Limited (NNPCL) has clarified that it is not responsible for the recent increases in the price of Premium Motor Spirit (PMS), also known as petrol. Despite public concerns, the NNPC explained that the pricing of petroleum products is governed by global market dynamics, not merely by the source of refining. This statement comes in response to circulating rumors suggesting that the NNPC aims to monopolise the distribution of products from the newly operational Dangote Refinery.
NNPC’s Statement on Dangote Refinery Operations
In a detailed response, the NNPC addressed accusations by the Muslim Rights Concern (MURIC), which claimed that actions by the NNPC are preventing the Dangote Refinery from offering competitive pricing. The NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, highlighted that the market remains open and no single entity has control over the off-take of petroleum products from any refinery, including Dangote’s.
Impact on Domestic Refining and Market Access
The NNPC further elaborated that recent changes in fuel prices do not affect the ability of Dangote Refinery or any other domestic producer to access the Nigerian market freely. This counters fears that the refinery would be unable to compete effectively due to NNPC’s alleged dominance.
Pricing Strategy and Market Conditions
The NNPC reiterated that if domestic refineries, such as Dangote’s, can produce fuel at lower costs, they are well-positioned to offer more competitive prices, which could be beneficial in the current economic climate where fuel prices are perceived as high.
NNPC’s Role and Market Freedom
Emphasising its stance on market freedom, the NNPC stated that it has no intention of becoming the sole distributor for Dangote Refinery or any other. It aims to support a competitive environment where all refineries operate on a willing buyer, willing seller basis. This approach ensures that no single entity can dictate market terms unilaterally.
Ensuring Fair Reporting and Public Understanding
The NNPC criticized MURIC for not verifying facts before releasing statements that could mislead the public and incite unnecessary tension. They urged advocacy groups and the media to strive for accuracy to maintain public trust and market stability.
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