Despite the challenges faced by Nigerians over high fuel prices, NNPCL insists that even with the Dangote Refinery, fuel costs won’t come down, citing global market dynamics as the key factor.
In a development that has dashed the hopes of many Nigerians suffering from the ongoing petrol price hikes, the Nigerian National Petroleum Company Limited (NNPCL) has firmly stated that the opening of the Dangote Refinery will not guarantee lower fuel prices. Despite public anticipation, NNPCL clarified that the cost of petroleum products, even from local refineries like Dangote’s, is determined by global market forces.
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, addressed these speculations in a statement, emphasizing that the company has no intention of becoming the sole distributor for the Dangote Refinery. “The pricing of petroleum products, whether from the Dangote Refinery or any other, will continue to be dictated by global market forces,” Soneye stated.
The NNPCL further noted that the recent petrol price increases are not influenced by any operations at the Dangote Refinery or any other domestic refinery. The company highlighted that domestic refineries, including Dangote, are free to sell to any marketer on a “willing buyer, willing seller” basis.
“There is no guarantee that domestic refining will lead to lower prices compared to global parity pricing frameworks,” the statement read. “NNPCL will only consider off-taking petroleum products from the Dangote Refinery if the market prices exceed the pump prices in Nigeria.”
The announcement comes amid rising public frustration and economic hardship, with many Nigerians hoping that the new refinery would alleviate the burden of high fuel prices. However, NNPCL’s clarification has sparked a wave of disappointment, as it suggests that domestic refining may not bring the much-desired relief to Nigerian consumers.
NNPCL also dismissed suggestions that it aims to monopolize the distribution of Dangote’s products, insisting that in a fully deregulated market, all players are free to operate independently. “The notion of NNPCL becoming the sole distributor does not arise in a free market environment,” the statement added.
With these revelations, many Nigerians are left wondering what the future holds for fuel pricing and whether any relief is in sight amidst the current economic challenges.
Ebenezar Kanu, for All Facts Newspaper
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