2 months ago
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The Federal Government has stated that it will not interfere in the ongoing dispute between the Nigerian National Petroleum Company Limited and Dangote Refinery over the pump prices of Premium Motor Spirit (petrol).
This was disclosed by the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, while briefing State House correspondents at the Aso Rock Villa, Abuja, on Wednesday.
Onanuga explained that, since the petroleum market has been deregulated, both Dangote and NNPCL, as oil refiners and marketers, have the freedom to set their petrol prices based on market forces.
“The PMS price regime has been deregulated. Dangote is a private company, and NNPC must remember it is a limited liability company. Whatever disagreements they have is their own issue.
“Even according to the terms of the Petroleum Industry Act, NNPC operates independently. While it is owned by the Federal Government, along with state governments and local councils, it functions as a limited liability company.
“You’ll notice that private marketers have already expressed concern, saying the NNPC or Dangote prices are too high for them, and they may resort to importing fuel,” he explained.
On 15th September 2024, NNPCL claimed to have purchased petrol from Dangote Refinery at ₦898 per litre. However, Dangote Refinery refuted this, stating the claim was misleading and emphasising that the price included NNPCL’s additional costs, such as profit margins and other expenses. Dangote maintained that its petrol is about 15% cheaper than imported alternatives.
This disagreement has also fuelled concerns about NNPCL’s dominance in fuel distribution, which reportedly prevents independent marketers from accessing Dangote’s products directly. The marketers have appealed to the government to allow them direct access to Dangote’s petrol.
Onanuga pointed out that healthy competition in the market benefits Nigerian consumers, as competition generally drives prices down.
“It is the consumers who benefit if a price war ensues. If NNPC’s price is too high, the independent market can import fuel and sell at prices they find reasonable and profitable. The government will not interfere in this matter.
“Dangote operates as a private entity, and NNPC, as a limited liability company, is entitled to set its own prices,” he said.
