The Nigerian Government has distanced itself from the ongoing face-off between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery over petrol pricing, stating that it will not intervene in the dispute.
According to the Presidency, both NNPCL and Dangote Refinery are free to set their own pump prices for Premium Motor Spirit (PMS), otherwise known as petrol, as the petroleum market has been fully deregulated.
This is made known on Wednesday by President Bola Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, during a press briefing at the State House in Abuja.
Onanuga explained that the deregulated market allows oil refiners and marketers, including NNPCL and Dangote, to operate based on market dynamics without government interference.
He noted that the competition could eventually benefit Nigerian consumers by fostering competitive pricing, which might lead to a reduction in pump prices.
Onanuga said the government is committed to ensuring a free-market economy where consumers have choices. Both companies are now competing, and market forces will determine the price of petrol, he noted.
He said, “The PMS price regime has been deregulated. Dangote is a private company. NNPCL, you should not forget is a limited liability company.
“The dispute between the two is their own issue. According to the Petroleum Industry Act, NNPCL operates independently. 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.
“Private marketers have already expressed that NNPC and Dangote’s prices are too high for them, which may lead to them importing fuel.
“In the end, it’s the consumers who stand to benefit if a price war breaks out. If NNPC’s price is too high, the public market can bring in their own fuel and sell it at a more reasonable and profitable rate.”
“The government is not getting involved in this matter. Dangote operates his private company independently, and NNPC, as a limited liability company, has the authority to set its own prices,” Onanuga added
