Claims that it is weakening the Dangote Refinery have been refuted by the Nigerian National Petroleum Company Limited (NNPC Ltd), which maintains that the market is open to reduce pricing from any domestic refinery.

This follows the Muslim Rights Concern (MURIC) alleging that the Dangote Refinery will be unable to give reduced rates as a result of the most recent adjustments made to the Premium Motor Spirit (PMS) pump price.

The group’s executive director, Professor Ish­aq Akintola, issued a statement in which MURIC pleaded with the Nigerian government to allow the refinery to function freely and shield it from strangulation.

Moreover, MURIC charged that NNPCL had taken over as the refinery’s exclusive customer for all of its output.

The Dangote Refinery’s and all refineries’ petroleum product prices, according to NNPCL’s Chief Corporate Communications Officer Olufemi Soneye, are set by forces of the world market.

NNPCL asserted that it could not jeopardise a company in which it had a billion-dollar investment. It further stated that MURIC ought to have checked the facts before making any remarks that would stir common Nigerians against the group.

In an effort to correct the record, NNPC Ltd. also wants to clarify the following:

“Global market forces determine the pricing of petroleum products from all refineries, including Dangote Refinery Ltd. (DRL).” There is no bearing on the recent fluctuations in PMS pricing.

Furthermore, as the DRL has affirmed, we stress that there is no assurance that local refining will be less expensive than any global parity pricing scheme. The NNPC Ltd. will only completely offtake PMS from the DRL in the event that market pricing for the product surpass Nigerian pump rates. As is now the case for all fully deregulated products, the DRL and any other domestic refinery are free to sell directly to any marketer on a willing buyer, willing seller basis.

The statement said, in part, “The NNPC Ltd. cannot undermine a business in which it holds a billion-dollar stake.”