Financial Energy Review
……..Reaffirms Deregulated Market for Local Refineries…….
……..by Ben Ndubuwa…….
The Nigerian National Petroleum Company Limited (NNPCL), has said it is committed to ensuring that the federal government maintains a deregulated market for local refineries, including the Dangote Refinery.
The Chief Corporate Communications Officer of NNPC Ltd, Olufemi Soneye told Financial Energy Review, that all local refineries, including the Dangote Refinery, are free to sell to any marketer on a willing seller, willing buyer basis.
He clarified that NNPC Ltd only intervenes if the selling price exceeds the pump price, a legal safeguard designed to protect consumers. Soneye stressed that NNPC Ltd, does not set prices in the deregulated market, which are determined by market forces.
“This is a deregulated market. We will only offtake if the price is higher than the pump price, which is a legal requirement under the Petroleum Industry Act (PIA) to ensure Nigerians are protected in terms of pricing. This is the law. We do not set prices in a deregulated market; prices are determined by market forces” Soneye said.
The NNPC Ltd, spokesman dismissed any notion of restrictive practices, asserting that no marketer has been instructed not to buy from Dangote or import fuel. He said transparency remains central to NNPC Ltd, operations, with both purchase and pump prices being publicly announced.
“I do not believe any marketer in the sector will tell you otherwise. Have we ever instructed any marketer not to buy from Dangote or not to import? This is a free market where all participants are welcome to engage. We are transparent and have publicly announced the initial purchase price from the Dangote refinery. Additionally, we provided a breakdown and announced the pump prices at our stations nationwide” he said.
This reaffirmation from NNPC Ltd follows concerns from some quarters regarding fuel pricing and market competition. Soneye emphasized that all participants are welcome to operate in the free market.
