Tinubu Government Declines to Mediate in Petrol Price Dispute Between NNPC and Dangote Refinery – Presidency

The Nigerian government confirms it will not intervene in the ongoing pricing dispute between NNPC and Dangote Refinery, emphasizing market deregulation

The Nigerian government has made it clear that it will not intervene in the ongoing dispute between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery over petrol pricing. According to the Presidency, both entities are operating within a deregulated market and are free to set their own prices for Premium Motor Spirit (PMS), commonly known as petrol, based on market conditions.

This was disclosed on Wednesday by Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Tinubu, during a press briefing at the State House in Abuja. Onanuga reiterated the government’s commitment to a free-market economy, allowing oil refiners and marketers, including NNPCL and Dangote Refinery, to operate without government interference.

“The government will not get involved in the pricing dispute between NNPCL and Dangote Refinery. Both entities operate independently in a fully deregulated market, and competition between them could eventually benefit Nigerian consumers by promoting competitive pricing,” Onanuga said.

He explained that this approach aligns with the Petroleum Industry Act, which grants NNPCL operational independence despite being owned by the federal, state, and local governments. Onanuga emphasized that market dynamics will now dictate petrol prices, creating room for private marketers to import and sell fuel at competitive rates if the prices offered by NNPCL and Dangote are deemed too high.

“The PMS price regime has been deregulated. Dangote operates as a private company, while NNPCL is a limited liability company,” he added. “If NNPC’s prices are too high, private marketers have the option to import fuel and sell at more competitive rates, which could spark a price war. In the end, it’s the consumers who stand to benefit.”

Onanuga underscored that the government’s role is to ensure a competitive market, leaving the decision-making to the forces of supply and demand. The government has no intention of intervening in the pricing strategies of NNPCL or Dangote Refinery, allowing the market to regulate itself.

As the dispute continues to unfold, the Nigerian consumer may witness the effects of competition in the coming weeks, with potential price reductions as market players adjust their strategies to stay competitive.