The Nigerian National Petroleum Company Limited, NNPCL, has rejected a recent report suggesting it has halted the importation of refined petroleum products.
NNPC spokesperson, Olufemi Soneye, disclosed this in a statement on Thursday, noting that the state-owned petroleum company would still source for products from outside the country when there is a need for that.
Soneye confirmed that the Group Chief Executive Officer of the NNPC, Mele Kyari, said at the Nigerian Association of Petroleum Explorationists conference that the company is not importing fuel anymore but taking from local refineries.
While saying Kyari’s statement was correctly quoted in the news report, Soneye said the GCEO, who spoke extempore for several minutes, was misinterpreted.
He said: “The GCEO’s statement ’today, NNPC does not import any product; we are only taking from domestic refineries’, should not be construed to imply that NNPC Ltd is obligated to be the sole off-taker of any refinery or that we will no longer import fuel.
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“While NNPCL prioritises sourcing products from domestic refineries, this is contingent upon economic viability. If local supply is cost-effective, it will be preferred, but the same principle applies to other marketers, who will also evaluate total costs when deciding whether to buy locally or import.”
According to Soneye, economic viability will guide NNPC Ltd in its decisions on whether to source refined petroleum from local refineries or import, noting that Kyari has not announced the end of fuel importation.
“It is also essential to note that the authority to grant import licenses resides with the Nigerian Midstream and Downstream Petroleum Regulatory Authority, as mandated by the Petroleum Industry Act.
“NNPCL does not have control over more than 30 per cent of the market, as stipulated by the PIA, which aims to prevent monopolies.
“The law promotes a free-market system where competition drives efficiency and cost reduction, ensuring that consumers benefit. Domestic refiners must compete on price and value, as patronage cannot be legislated in a deregulated sector.”
While commending the publication for correctly noting NNPC’s investments in Compressed Natural Gas infrastructure to enhance energy security, Soneye expressed concern over repeated misinterpretations in some recent reports. He cautioned against further inaccuracies, especially given the significance of energy security.
“We urge your reporters to seek clarification when needed, particularly on sensitive topics. A commitment to accuracy will benefit both your readership and your publication’s reputation,” Soneye added.
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