The Presidency has explained why the federal government cannot intervene in the ongoing petrol price dispute between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery, stating that both entities are privately operated.
In a press briefing held at the Presidential Villa on Wednesday, O’tega Ogra, Senior Special Assistant to the President on Digital and New Media, clarified that the petroleum sector has been fully deregulated, and as such, the NNPCL and Dangote are functioning as independent private businesses. He emphasised that despite the government’s partial ownership in NNPCL, the company’s operations are autonomous under the Petroleum Industry Act (PIA), which limits government involvement in pricing decisions.
Ogra addressed concerns about the impact on consumers, highlighting that the public could ultimately benefit from the situation. He stated, “It’s the consumer who benefits if a price war starts.”
He went on to explain, “As far as this government is concerned, the PMS regime has been deregulated. Dangote is a private company, and NNPCL is a limited liability company. Whatever controversy both of them are having has nothing to do with the government. If you go by the terms of the Petroleum Industry Act, NNPC is on its own, even though it’s owned by the federal government, state governments, and local councils, it operates independently as a limited liability company.”
Ogra noted that private marketers have the option to import fuel if they find NNPCL or Dangote’s prices too high, ensuring competition in the deregulated market. “If NNPCL fuel is too expensive, private marketers can bring in their own fuel and sell it at a price they find reasonable and profitable,” he added.
He reiterated that the government remains uninvolved in the dispute, stressing, “Dangote is a private company working on its own. NNPCL, as a limited liability company, has the right to set its own fuel prices.”
Ogra also highlighted the government’s alternative energy initiatives, pointing to the adoption of Compressed Natural Gas (CNG) in various cities across Nigeria. “The government has a program to ensure Nigerians have a choice. If you don’t want to use PMS, you can opt for CNG, which is already being embraced by transporters in cities like Lagos, Ibadan, and Benin,” he concluded.
This clarification reaffirms the government’s stance on maintaining the deregulated nature of the petroleum industry, allowing market forces to dictate fuel prices without direct governmental intervention.
