The Nigerian National Petroleum Company Limited (NNPCL) has not been given permission to usurp the authority of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by setting the price of gasoline that comes from the Dangote Refinery.
According to the NMDPRA, the agreement between Dangote Refinery and NNPCL was predicated on a relationship of willing supplier and willing buyer.
The Chief Executive Officer of NMDPRA, Engr. Farouk Ahmed, who made the submission, said in line with the provisions of the Petroleum Industry Act (PIA), 2021, the interaction of market forces is what determines the price of petrol in the country since the government has deregulated the sector.
He added that the role of the NMDPRA is not to allow anyone to go overboard by exploiting the market or the final consumers.
After lifting petrol from Dangote Refinery as the sole buyer of products from the facility, the NNPCL released a price template which indicates ₦950.22 as the average price of a litre in Lagos State, and ₦1, 019.22 per litre for Borno State, the longest and extreme end of the supply route.
This development raised concerns among stakeholders and industry watchers, with insinuations that the NNPCL had taken over one of the key functions of the NMDPRA.
But speaking in a chat with Daily Trust on Tuesday, Engr. Ahmed said the controversy generated by the action is needless.
He submitted that the pump price announced by the NNPCL was meant for its outlets across the country, and other marketers are not bound by the prices.
“We try to restrain ourselves from needless controversy,” he said.
“But to put the record straight, the recent transaction between NNPCL and Dangote Refinery is strictly based on a willing buyer and a willing seller.
“But I know you will ask me that the supply is not sufficient in Nigeria, hence the high price. Of course, things would work fine when we have more players in the sector.
“But in a situation whereby some Nigerians expect us to regulate the price, it then means that the sector has not been deregulated; and it means we would continue to have problems,” he added.
