The fuel price controversy raged on yesterday after the Nigerian National Petroleum Company Limited (NNPCL) declared that local refining of petrol does not necessarily guarantee lower prices of the product......Read The Full Article>>.....Read The Full Article>>
The company said fuel price is principally determined by market forces and exchange rate.
The fuel shortage triggered by short supply persisted yesterday 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 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 emphasise 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.”
Reviewing the current fuel shortage across the country, IPMAN President Shettima said yesterday in Kaduna that the crisis would soon be over.
He told newsmen that his optimism stemmed from the assurances given the association by the Group Managing Director (GMD) NNPCL and the Minister of Oil and other stakeholders in the oil industry during a recent meeting.
According to him, wherever there are chances, especially increase in pump price of fuel, there is bound to be some problems in the adjustment of fuel pump and marketers will be asked to pay any outstanding debt before they can be allowed to lift fuel on the new price.
“The moment all these requirements are put in place the fuel crisis will be over,” he added.
The oil marketer said his organisation was not aware of the reason why fuel prices were increased, because it is the authority that decides on the price.
He said: “We are marketers and we are there to market the products.
“We are not aware of their reasons for the increase in fuel prices.”
Protest not solution to fuel price hike – NANS
Addressing reporters in Abuja yesterday, the Forum of Zonal Coordinators of NANS called for a shift from protests to constructive dialogue on the fuel price hike.
Engaging the relevant stakeholders in talks, they said, would be more effective in addressing the issue and finding sustainable solutions rather than resorting to demonstrations that could be hijacked by those with selfish interests.
The coordinators said NANS did not call for any protests or demonstrations, and urged the public to disregard such move by non-students with ulterior motives.
The Chairman of the Forum, Comrade Bilal Kurfi, who spoke for the group, said: “Rather than the student population marching on the streets in protests that could be hijacked to further heighten the already escalated tension in the system, we believe that dialogue, rather than confrontation, should be adopted to resolve the current crisis.
“We are intellectuals, not street urchins or political thugs who can be hired by anyone or a group of moneybags to destabilise the country.
“NANS is committed to peaceful and constructive engagement, and we will not be part of any activity that may compromise the safety and well-being of our members and the general public.
“The students shall engage in dialogue with the FG and NNPCL to seek a reduction in petrol prices to mitigate the effects of inflation on our colleagues.
“The idea of protests being called by some non-students masquerading as our colleagues could destabilise the country, and this is not an option for us.
“We prefer dialogue over actions that could be deemed partisan and counterproductive to the development and unity of our nation.”
