FG Will Not Intervene In NNPCL, Dangote Petrol Price Face-Off – Presidency

FG Will Not Intervene In NNPCL, Dangote Petrol Price Face-Off – Presidency

by Victor Ndubuisi
A+A-
Reset

In the conflict over fuel pump prices between Dangote Refinery and the Nigeria National Petroleum Company Limited, or NNPCL, the federal government has thrown in the towel.

According to the Federal Government, the two parties are free to choose their own market prices for customers.

President Tinubu’s Special Advisor on Information and Strategy, Bayo Onanuga, briefed State House correspondents in Abuja on Wednesday about the Federal Government’s stance.

Operators Set Petrol Price at N1,200 Per Litre As NNPCL, Marketers in Heated Dispute

He clarified that Dangote and NNPCL, as oil refiners and marketers, are permitted to operate in accordance with economic market forces and establish their rates for petrol, also known as Premium Motor Spirit (PMS), since the petroleum industry has been deregulated.

Advertisement

According to the presidential spokesman, such a situation would ultimately benefit Nigerian consumers because price wars and competing alternatives drive down costs.

Onanuga said: “The PMS price regime has been deregulated. Dangote is a private company. NNPCL you 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 terms of the Petroleum Industry Act, NNPCL is on its own. Even though it’s owned by the Federal Government, the state government and local councils and everything, it is operating as a limited liability company.

No Plan To Increase Petroleum Pump Prices – NNPCL

“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.”

Advertisement

Even if NNPCL and Dangote are at odds over the precise price at which the former purchases the product from the latter, the lowest petrol pump price at the moment is N895 a litre.

 

Follow us on Facebook

Advertisement
Post Disclaimer

The opinions, beliefs and viewpoints expressed by the author and forum participants on this website do not necessarily reflect the opinions, beliefs and viewpoints of Anaedo Online or official policies of the Anaedo Online.

You may also like

Advertisement