The Chairman and Chief Executive Officer (CEO) of Skymark Energy and Power Limited, Muhammad Saleh Hassan, has taken a swipe at critics that are passing flaks on the NNPCL and its Group Chief Executive Officer (GCEO) Mele Kyari, over Dangote Refinery Ltd (DRL) fuel, following insinuations that the recent fuel price hike is a manipulation by the NNPCL to sell (DRL) fuel at exorbitant prices.
There are also insinuations that the NNPCL is attempting to monopolize the DRL’s fuel pricing to continue to perpetrate outrageous fuel prices and hardship in the country.
But the CEO of Skymark Energy and Power LTD has contended that the insinuations, rumours, castigation and perception by some Nigerians were wrong, stressing that all these were due to lack of understanding of the narratives and technicalities in the system.
Hassan who stated this in a statement in Abuja on Monday, noted that critics should not just go into the public space, especially social media, without proper verification to cast aspersion on an entity (the NNPCL) and oil guru (Kyari) who have the relevant expertise to take wise decisions that could help the country in its fuel challenges.
Recall that Muslim Rights Concern (MURIC) had, last week,
insinuated in a press conference that the Dangote Refinery Limited (DRL) is being undermined by the actions of the NNPCL which, it claimed, led to recent increases of fuel pump price and would prevent the Dangote Refinery from offering lower prices. MURIC also claimed that NNPCL had become the sole off-taker of all products from the refinery.
But the Skymark Energy and Power LTD boss has contended that the criticisms and insinuations did not hold waters because neither the NNPCL nor Kyari had any absolute power to determine the company’s fuel practice, as only market forces had the prerogative to do so based on global practice. He added that neither had NNPCL become the sole offtaker of all DRL’s products.
“Why should anybody think that the NNPCL is undermining Dangote Refinery’s intention to sell its fuel at lower prices, whereas it cannot undermine a business in which it holds a billion-dollar stake? Is that possible? No.
Hassan stressed that NNPCL’s position that DRL is free to sell directly to marketers is to protect Nigerians’ interest, which is an indication that it is not manipulating the operations of the company in any way.
“As I have always stressed as a matter of fact, petroleum products pricing from any refinery, including the Dangote Refinery Ltd, is determined by global market forces. Therefore, there is no guarantee of lower prices associated with domestic refining of the products in the country. This is why people should not just conclude that Dangote Refinery fuel would be sold at lower prices and blame the NNPCL and Kyari for not guaranteeing lower prices,” Hassan stressed.
He added: “The NNPCL has said that Dangote Refinery and any other domestic refinery are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products. Why then should the NNPCL and Kyari be castigated over the Dangote Refinery pricing?” Hassan asked rhetorically.
While explaining that NNPCL’s failure to lift DRL fuel and fix the price at a lower price as being expected by Nigerians and interpreted as a sabotage, Hassan noted that its intention was to allow an open market for marketers to operate on deregulation basis as well as flexible prices in a competitive environment which may also guarantee lower prices.
Hassan who insisted that the NNPCL is protecting Nigerians’ interest said: “NNPCL is trying to ensure that Dangote Refinery fuel is available at cheapest and affordable prices. If Dangote Refinery sells directly to the markets the price can be above N1,000 per litre. That is why NNPCL is insisting that crude oil be sold to DRL In naira, not USD (U.S dollar) as it is sold to other multinationals and which is a global best industrial practice,” Hassan said.
Dangote Refinery operates with global standard. The NNPCL and Dangote Refinery relationship is for mutual benefits to protect the interest of Nigerians and to proffer solution to the protracted energy crisis in the country,” he added.
While also explaining the business technicalities surrounding the NNPCL and DRL, the energy stakeholder said: “Dangote Refinery is in business and would not be ready to sell at a loss. Its interest is to make gains to cover production and transportation costs. The crude oil sent to Dangote Refinery for production is on cost which also determines price. Dangote Refinery is not in Niger Delta which is a crude oil base. Also, crude oil is not in Ijebu,Lekki-Lagos where the Refinery is located. It is transported from Niger Delta to Lekki-Lagos.
Therefore, the company can not be a father Christmas just because it is producing fuel in Nigeria,” he added.
Hassan who also give an enlightenment on fuel global challenges, noted. “High cost of fuel is a global trend and not peculiar to Nigeria. The prices in Nigeria are even cheaper than Saudi Arabia which is the richest oil country in the world. Yet, fuel is costlier there. All the refineries in the US and Saudi Arabia do not have fixed prices, their prices fluctuate in accordance with international market forces. They also have MD’s GCEOs or heads of oil companies. But nobody calls their names nor demands their sack because they understand the fact that fuel prices are determined by international market forces.
Hassan who contended that some critics criticise Kyari even though they didn’t have facts on the scenarios in oil global market as well as Nigeria, noted that they did so because they were eyeing his job, but urged them to wait for their time.
“If you’re interested in Kyari’s job, just be patient. He won’t be there forever. He will step aside at the right time and after finishing the good jobs he is doing and being appreciated by government and people who understand the truth. After all, somebody was there before he came and another person will come after him. Moreover, he came on merit. So, join the queue and take your turn later, not now.
“Therefore, don’t smear Kyari’s name and organize protest against him because the fuel situation in the country is not his fault. It’s beyond him. He doesn’t have a unilateral decision on it.
“The president and Nigerians who understand the narratives are smart enough to understand the games that some people are playing by blaming Kyari and the NNPCL.
“Nobody can play politics with expertise and be justified. Kyari has the expertise that is valued above politics and selfishness. Therefore, people should leave Kyari alone and allow NNPCL to do its job.
“Recently, the NNPCL denied claims that it is responsible for the recent hike in petroleum prices and that is the fact. Therefore, the insinuations that it is attempting to monopolise the offtake of all products from the Dangote Refinery do not hold waters.
“The NNPC Ltd can not be the sole offtaker of Dangote Fuel because the market is open to lower prices from any domestic refinery.
“Therefore, the recent press release by the Muslim Rights Concern (MURIC) which claimed that the Dangote Refinery Limited (DRL) is being undermined by the Nigerian National Petroleum Company Limited (NNPC Ltd) to sell petrol at hiked rates is not constructive.
Hassan also stressed that recent changes in petrol prices had nothing to do with Dangote Refinery or any other domestic refinery’s access to the Nigerian market.
“If the current prices are perceived as high, then it is an opportunity for the refinery to sell its products at lower prices in the Nigerian market and it is not NNPCL or Kyari that can determine it,” Hassan said.
He added: “After all, the NNPCL has said that Dangote Refinery and any other domestic refinery are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products. Why then should the company and Kyari be castigated over the Dangote Refinery pricing?
“We are all aware that the NNPCL has no intention to become the distributor for any entity in a free market environment. Therefore, there is nothing like the NNPCL becoming a sole off-taker of Dangote Refinery, Hassan stressed.
“So, nobody should incite ordinary Nigerians against the NNPCL as the recent press release by MURIC suggests,” Hassan stressed.
