The Presidency has clarified its position on the ongoing pricing dispute between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery, affirming that both entities operate independently in a deregulated market.
In a statement released on Friday by Nnaamaka Okafor, Special Assistant to the Honourable Minister for Petroleum Resources (Oil), Senator Heineken Lokpobiri, the Presidency reiterated the minister’s assertion regarding the petrol price differences between various locations in the country.
Lokpobiri had emphasized that the government does not fix prices in the deregulated sector, stating, “The sector is deregulated, and with the availability of products, the price will stabilize.”
Okafor’s statement further quoted the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, who underscored that under the Petroleum Industry Act, NNPCL operates autonomously despite government ownership.
“The PMS regime has been deregulated. Dangote is a private company, and NNPCL operates as a limited liability company. Any pricing dispute between them is their concern,” Onanuga explained.
He added that the government intends to promote alternative energy solutions like Compressed Natural Gas (CNG), which offers a cheaper option compared to Premium Motor Spirit (PMS), commonly known as petrol.
Onanuga highlighted the significant price difference, noting that CNG costs approximately N230 per litre equivalent, while PMS prices vary around N850 per litre.
In conclusion, the statement affirmed that the government’s role is not to intervene in the pricing controversy but to encourage competitive market dynamics that benefit consumers.
