Dangote Refinery Plc has dismissed claims that its pricing arrangement favours MRS Oil Nigeria Plc or undermines competition in the downstream petroleum market, insisting that all marketers purchase products on the same terms at the refinery gate.
The newly appointed Managing Director of Dangote Refinery Plc, David Bird, stated this on Wednesday during a press briefing at the refinery complex in Lagos, following concerns raised over the retail pump price of petrol reportedly sold by MRS at ₦739 per litre.
Responding to questions on whether the pricing constituted market disruption or anti-competitive behaviour, Bird said the refinery does not determine retail prices and does not grant 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.
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Bird explained that Nigeria’s downstream market is fully deregulated, leaving marketers free to determine their pump prices based on their individual cost structures and 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 stressed that MRS does not receive any special pricing advantage, noting that its operations, including direct lifting and distribution, are commercial decisions tied largely to product quality and 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.
Addressing questions on domestic supply volumes, Bird said 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.
“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.
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However, Bird expressed optimism that stable pricing and the availability of affordable, high-quality fuel would restore growth 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.
The refinery’s MD also dismissed speculation about operational disruptions at the refinery, assuring stakeholders that output has remained steady.
“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.
