Dangote Refinery Addresses Pricing Concerns, Insists on Fair Market Practices
Dangote Refinery Plc has dismissed allegations that its pricing arrangement favors MRS Oil Nigeria Plc or undermines competition in the downstream petroleum market. The company’s Managing Director, David Bird, stated that all marketers purchase products on the same terms at the refinery gate, with no preferential treatment given to any marketer.
Bird’s comments came during a press briefing at the refinery complex in Lagos, following concerns over the retail pump price of petrol reportedly sold by MRS at 739 per litre. He emphasized that the refinery does not determine retail prices and that marketers are free to set their prices based on individual cost structures and strategies.
The downstream market in Nigeria is fully deregulated, allowing marketers to determine their pump prices. Bird noted that consumers have the choice to decide where to buy fuel, whether based on convenience, brand loyalty, or proximity. He assured that MRS does not receive any special pricing advantage and that its operations are commercial decisions tied to product quality and compliance.
The refinery is currently producing about 50 million litres of fuel daily and is capable of meeting Nigeria’s needs despite volatility in demand over recent years. Bird expressed optimism that stable pricing and the availability of affordable, high-quality fuel would restore growth in consumption.
Addressing questions on domestic supply volumes, Bird said that demand has faced disruptions from pricing changes and currency devaluation, leading to volatility and demand destruction. However, he believes that the refinery is well-positioned to meet any potential growth in demand over the next three years, and post-expansion, its production capacity will more than meet that demand.
The refinery’s MD also dismissed speculation about operational disruptions, assuring stakeholders that output has remained steady, with marketers able to lift required volumes. With a strong regulator driving compliance to fuel quality, consumers can be assured that they are getting the same quality product when buying from any petrol station.
