The fuel price controversy rages on after the Nigerian National Petroleum Company Limited (NNPCL) declared that local refining of petrol does not necessarily guarantee lower prices of the product.
The company said fuel price is principally determined by market forces and exchange rate.
The fuel shortage triggered by short supply still persists, although the National President of Independent Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Maigandi Shettima, said the fuel crisis would soon be over.
An influential section of the National Association of Nigerian Students (NANS) opted out of the strike being called for next month by some people over the recent rise in fuel price.
The Forum of Zonal Coordinators of NANS said in Abuja that Nigerian students are no touts that could be deployed at will by vested interests.
Manufacturers said the price hike has done a lot of damage to business.
The Chief Corporate Communications Officer of NNPCL, Olufemi Soneye, said in a statement in Abuja that domestic refineries, including Dangote Refinery, “are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products.”
He was reacting to an allegation by Muslim Rights Concern (MURIC) that the NNPCL was undermining DRL.
The Islamic group had claimed that the recent adjustment to the pump price of Premium Motor Spirit (PMS) would prevent Dangote Refinery from offering lower prices and that NNPCL had become the sole off-taker of all products from the refinery.
Similar claims were made by IPMAN, whose spokesman, Chief Chinedu Ukadike, expressed strong concerns over what he called the designation of NNPCL as the sole off-taker of petrol from the Dangote Refinery.
He said: “As major stakeholders and independent marketers, we believe Dangote should be allowed to sell directly to us. The distribution should be open so that other stakeholders can purchase the product, just like NNPC.
“NNPC is also a competitor in the downstream sector, and it is wrong to single out one competitor among others, giving them exclusive access to petrol while others remain dependent on a single source. This will lead to monopoly, profiteering, and stagnation in the distribution process.”
However, the NNPCL dismissed the allegations as untrue yesterday.
It said: “The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd. (DRL), is determined by global market forces. The recent changes in PMS prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market.
“In fact, if current prices are perceived as high, it presents an ideal opportunity for the refinery to sell its products at lower prices in the Nigerian market.
“Furthermore, we emphasize that there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL.
“The NNPC Ltd will only fully off-take PMS from the DRL if the market prices of PMS are higher than the pump prices in Nigeria. The DRL and any other domestic refinery are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products.
“NNPC Ltd. has no desire or intention to become the distributor for any entity in a free market environment, and therefore, the notion of becoming a sole off-taker does not arise.
“The NNPC Ltd. cannot undermine a business in which it holds a billion-dollar stake.
“As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and has the potential to incite ordinary Nigerians against the NNPC Ltd.”
The NNPCL currently holds 7.2 per cent equity in the DRL.
The Nation
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