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The Nigerian National Petroleum Company Limited (NNPCL) has stated that there is no guarantee of lower petrol prices as it prepares to begin lifting fuel from the highly anticipated Dangote Refinery, starting September 15. This clarification was made in response to growing expectations that domestic refining would lead to significant cost reductions for consumers.
In a statement issued by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, the company emphasized that the pricing of petroleum products from any refinery — including the Dangote Refinery Ltd (DRL) — is dictated by global market forces.
“The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd., is determined by global market forces,” Soneye said, setting realistic expectations for the public regarding the potential impact of the new refinery.
Soneye’s remarks also addressed speculation that NNPCL is attempting to monopolize the purchase of all products from the Dangote Refinery.
The clarification followed a press release by the Muslim Rights Concern (MURIC), which alleged that NNPCL’s actions could prevent the refinery from offering competitive prices.
MURIC’s statement further claimed that NNPCL had secured the exclusive rights to the offtake of all products from the Dangote facility, potentially undercutting the refinery’s ability to provide lower pump prices for Premium Motor Spirit (PMS).
Responding to these assertions, Soneye rejected the notion of monopolistic practices, stressing that market dynamics will drive the pricing model and that NNPCL’s relationship with the Dangote Refinery remains grounded in commercial terms.
While the commencement of petrol lifting from the Dangote Refinery marks a significant milestone for Nigeria’s energy sector, the NNPCL’s statement serves as a reminder that global supply and demand, rather than domestic refining capacity, will largely influence fuel prices.
This development has drawn attention as the public remains hopeful that the Dangote Refinery, the largest in Africa, will alleviate the country’s dependence on imported petroleum products and help stabilize prices in the long run.
However, as the NNPCL’s statement highlights, the transition may not bring immediate relief at the pumps.