FG Won’t Intervene In Petrol Pricing Dispute Between NNPC, Dangote Refinery-Presidency
The Federal Government says it would not be interfering in the ongoing dispute over petrol pricing between the Nigeria National Petroleum Company Limited (NNPCL) and Dangote Refinery, affirming that both entities are free to set their own market prices for consumers.
This was disclosed by Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Tinubu, during a briefing in Abuja on Wednesday.
In his address, Onanuga emphasized that with the full deregulation of the petroleum market, the government no longer intervenes in pricing, allowing oil refiners and marketers, including Dangote Refinery and NNPCL, to operate based on market dynamics.
According to him, this competitive environment will ultimately benefit Nigerian consumers by encouraging price competition, which is likely to lead to lower costs for petrol, also known as Premium Motor Spirit (PMS).
He further stressed that market forces will now dictate pricing in the sector, fostering greater efficiency and consumer options.
According to Onanuga: “The PMS price regime has been deregulated. Dangote is a private company. NNPC should not forget is a limited liability company.
“Whatever controversy both of them are having is their own problem. Even if you go by the by the terms of Petroleum Industry Act, NNPC is on its own. Even though it’s owned by the federal government, the state government and local councils and everything, it isoperating as a limited liability company.
“You can see that the private marketers have said that they find the NNPC or Dangote price too much for them, and they may resort to importing fuel.
“It is the consumers who benefit if a price war starts. If NNPC fuel is too much, the public market can go to the market and bring in their own fuel and sell at the price that they think is very reasonable and profitable for them.
“So, government is not dabbling into this controversy. Dangote is running a private company working on his own, and NNPC is a limited liability company that has the right to fix the price of its own product.”
