Dangote Refinery Plc has refuted allegations that its pricing structure favours MRS Oil Nigeria Plc or distorts competition in the downstream petroleum sector, maintaining that all marketers purchase products under identical terms at the refinery gate.
The newly appointed Managing Director of Dangote Refinery Plc, David Bird, made this clarification on Wednesday during a press briefing at the refinery complex in Lagos, amid concerns surrounding reports that MRS was retailing petrol at ₦739 per litre.
Addressing questions on whether the pricing arrangement amounted to market disruption or anti-competitive conduct, Bird stressed that the refinery does not set pump prices and does not offer preferential treatment to any marketer.
“I can’t comment on retail pricing. All I can assure you is that there is zero preferential pricing. Every truck that leaves this site has purchased a product at ₦699 ex-gate from a refinery perspective. There is no differentiation among customers,” he said.
Bird explained that Nigeria’s downstream petroleum market is fully deregulated, allowing marketers to independently fix their retail prices based on individual cost considerations and business strategies.
“What a marketer chooses to do and post as their retail price is entirely up to them. It is a fully competitive market, and the consumer has the choice to decide where to buy fuel, whether based on convenience, brand loyalty or proximity,” he added.
He further emphasised that MRS does not enjoy any special pricing advantage, noting that decisions such as direct lifting and distribution are commercial choices, largely influenced by product quality standards and regulatory compliance.
“One thing I would add is the importance of understanding the original source of the product consumers are buying. We have a very strong regulator that drives compliance to fuel quality, and consumers should be assured that when they buy from any petrol station, they are getting the same quality product,” Bird said.
On domestic supply capacity, the managing director disclosed that the refinery is currently producing about 50 million litres of fuel daily and is capable of meeting Nigeria’s fuel needs, despite recent demand fluctuations.
“There has been a lot of speculation about what the true Nigerian demand is. I’m not going to speculate on that. Demand has faced disruptions from pricing changes and currency devaluation, leading at times to volatility and even demand destruction,” he said.
Bird, however, expressed confidence that consistent pricing and the availability of affordable, high-quality fuel would support a rebound in consumption.
“Looking forward, abundant, cheap, high-quality fuel will bring stability, and that stability should enable demand growth to recommence. We are well-positioned to meet any potential growth in demand over the next three years, and post-expansion, our production capacity will more than meet that demand,” he said.
He also dismissed claims of operational challenges at the refinery, assuring stakeholders that production has remained stable.
“We have continued to deliver 50 million litres a day. Whenever offtake has required it, marketers have been able to lift those volumes,” Bird said.