The Presidency has explained why government agencies cannot engage in the ongoing price dispute between Nigerian National Petroleum Company Limited and Dangote Refinery, citing the fact that both enterprises are private.
In a statement on Friday, by the Special Assistant to the Honourable Minister for Petroleum Resources (Oil), Senator Heineken Lokpobiri, on media, Nnaamaka Okafor, the Presidency corroborated the minister’s stand on the pricing feud between the NNPCL and Dangote Petroleum Refinery.
Recall that Lokpobiri had stated shortly after a brief meeting he had earlier this month with the Vice President, Kashim Shettima, that the price of petrol in the country could differ in various locations, but by the time there is the availability of products across the country, the price will be stabilised.
The minister further stated that the sector is deregulated and therefore the government is not responsible for fixing prices.
The minister had said, “What is important is that the government is not fixing prices. This sector is deregulated. And we believe that with the availability of products, the price will find its level. And this is important for Nigerians to know.
“There is enough product in the country to be able to meet the demands of Nigerians, there should be no panic buying. And we also believe that Nigerians need to know that the government is not fixing prices. That is what I want to convey to Nigerians.”
However, Okafor in the statement on Friday, noted that while corroborating this during a press briefing, the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, also emphasised what Lokpobiri had said earlier that both entities operate independently in a deregulated market.
He said under the Petroleum Industry Act, NNPCL functions autonomously despite government ownership.
“The PMS (Premium Motor Spirit) field, the PMS regime, has been deregulated. Dangote is a private company. NNPCL should not forget it’s a limited liability company. Whatever controversy both of them are having is their own problem.
“They are operating, even if you go by the terms of 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, but it’s operating as a limited liability company.
“You can see what the private market has said that I think they find the NNPC or Dangote price too much for them. They will resolve to import fuel because they clear the market at the end of the day. It’s the consumer who benefits if a price war starts, if NNPC fuel is too much, the public market can go to the market and bring in their fuel and sell at the price that they think is very reasonable and profitable for them.
“So my answer is that, as far as this is concerned, the government is not dabbling into this controversy. Dangote as a private company is working on his own. NNPC is a limited liability company, and it has the right to fix the price of its own and so on,” the statement quoted Onanuga to have said.
Onanuga added that instead of intervening, the government plans to promote alternative energy solutions like Compressed Natural Gas, and CNG, offering a cheaper option for consumers and subsidizing conversion costs for vehicles.
He noted that the price difference is significant, with CNG costing about N230 per litre equivalent compared to PMS at about N850 per litre.