Dangote Refinery’s Managing Director, David Bird, has defended the company’s fixed petrol price of N739 per liter, stating that it is competitive. Bird made this assertion during a press briefing in Lagos, where he addressed concerns that the refinery’s pricing strategy is distorting the market.
The 650,000-barrel-per-day refinery has been at the center of controversy, with some industry players criticizing its pricing approach. However, Bird emphasized that consumers have the freedom to choose between Dangote’s petrol and other available options. “The retail price is fully competitive. The consumer has a choice to choose whichever, and I’d like to see a change in how the regulator works for the market,” he noted.
Bird also highlighted the refinery’s achievements, including the successful supply of 500 million liters of fuel per day and 1000 trucks daily during the Yuletide season. This, he claimed, has ensured nationwide fuel supply and price stability. The Lekki-based refinery has been able to maintain a steady supply of petroleum products, which has helped to stabilize prices in the market.
In addition, Bird discussed the refinery’s crude supply arrangement, revealing that it currently receives 30 to 40 percent of its crude oil from the Naira-for-crude sales deal with the Nigerian National Petroleum Company Limited. This arrangement has helped to ensure a stable supply of crude oil to the refinery, which in turn has enabled it to maintain its production levels.
Currently, petrol prices in Nigeria vary, with consumers in Abuja and Lagos paying between N739 and N840 per liter. The stability of fuel prices is crucial for the country’s economy, and the Dangote Refinery’s contribution to this effort is significant. As the refinery continues to operate at full capacity, it is likely to have a positive impact on the country’s fuel supply and pricing landscape.
The development of the Dangote Refinery is a significant milestone for Nigeria’s oil and gas industry, and its operations are being closely watched by industry stakeholders and consumers alike. As the refinery continues to play a major role in the country’s fuel supply chain, its pricing strategy and operational efficiency will remain under scrutiny.
