The Presidency has reiterated its support for the stance of Honourable Minister for Petroleum Resources, Senator Heineken Lokpobiri, regarding the ongoing pricing dispute between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery.
In a statement released on Friday, September 27, by Nnaamaka Okafor, Special Assistant to the Minister, the government clarified that it cannot intervene in this matter as both entities are private enterprises operating within a deregulated market.
The statement followed remarks made by Lokpobiri after a recent meeting with Vice President Kashim Shettima. The minister had indicated that petrol prices could vary by location, but emphasized that prices would stabilize with increased product availability across the country.
He reassured the public that the sector is deregulated, meaning the government does not set prices.
“What is important is that the government is not fixing prices. This sector is deregulated,” Lokpobiri stated.
He urged Nigerians to avoid panic buying, asserting that sufficient fuel supplies exist to meet demand.
During a press briefing, Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, echoed Lokpobiri’s statements, reinforcing that both the NNPCL and Dangote Refinery operate independently in a deregulated environment. Under the Petroleum Industry Act, NNPCL functions autonomously despite its government ownership.
“The PMS (Premium Motor Spirit) field has been deregulated. Dangote is a private company. NNPCL operates as a limited liability company. Any controversy between them is their own issue,” Onanuga explained.
He emphasized that if the prices set by NNPCL or Dangote are perceived as too high, the private market could step in, allowing consumers to benefit from competitive pricing.
Onanuga also highlighted the government’s commitment to promoting alternative energy solutions, such as Compressed Natural Gas (CNG), which offers a more affordable option for consumers. He noted that CNG currently costs about N230 per litre, compared to around N850 per litre for petrol.
In conclusion, the Presidency has made it clear that it will not intervene in the pricing dispute between NNPCL and Dangote Refinery, reaffirming its focus on fostering a competitive and deregulated fuel market.
