Lagos, Nigeria — The NNPC has clarified in a statement by its Chief Corporate Communications Officer, Olufemi Soneye, that global market forces will continue to dictate the pricing of petroleum products in Nigeria. The impact on domestic refineries, including Nigeria’s Dangote Refinery Ltd (DRL), will be significant in terms of domestic petrol pump prices. The NNPC emphasized that despite local refining capabilities, consumers should not expect guaranteed reductions in fuel prices, as domestic production does not inherently lead to lower costs at the pump.
Recent fluctuations in petrol prices have not altered the operational landscape for DRL or other domestic refineries within Nigeria. The Nigerian National Petroleum Corporation (NNPC) has made it clear that these price variations do not impede domestic refineries’ access to the local market.
The DRL and other domestic refineries retain the flexibility to engage directly with marketers on a willing buyer, willing seller basis. This practice aligns with the current deregulated market framework, allowing refineries to navigate market opportunities effectively. While high global prices present challenges, they also offer domestic refineries the chance to potentially offer lower prices within Nigeria, thereby balancing market dynamics.
The NNPC’s stance is clear: the corporation will only fully purchase Premium Motor Spirit (PMS) from DRL if prevailing market prices exceed domestic pump prices. The NNPC Ltd has no intention of assuming the role of a sole distributor within a free market environment, emphasizing its commitment to market-driven practices. The corporation’s strategic position reflects its focus on maintaining a competitive and equitable market structure for all stakeholders involved.
