Dangote Refinery Denies Favouring Any Marketer

Dangote Refinery Plc has dismissed allegations that its pricing arrangement favours MRS Oil Nigeria Plc or undermines competition in the downstream petroleum sector, insisting all marketers buy products on equal terms at the refinery gate. David Bird, the refinery’s newly appointed Managing Director, made the clarification on Wednesday during a press briefing at the company’s […]

Dangote Refinery Plc has dismissed allegations that its pricing arrangement favours MRS Oil Nigeria Plc or undermines competition in the downstream petroleum sector, insisting all marketers buy products on equal terms at the refinery gate.

David Bird, the refinery’s newly appointed Managing Director, made the clarification on Wednesday during a press briefing at the company’s Lagos complex, following concerns over MRS’s reported retail petrol price of ₦739 per litre.

Bird emphasised that the refinery does not set retail prices or 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. There is no differentiation among customers,” he said.

He noted that Nigeria’s downstream market is fully deregulated, allowing marketers to determine retail 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 consumers have the choice to decide where to buy fuel, whether based on convenience, brand loyalty, or proximity,” Bird added.

On MRS’s operations, Bird said the company does not receive any special pricing advantage. He highlighted that direct lifting and distribution decisions are commercial, driven largely by product quality and regulatory compliance. “Consumers should be assured that when they buy from any petrol station, they are getting the same quality product,” he said.

Addressing domestic supply, Bird stated that the refinery currently produces about 50 million litres of fuel daily and is capable of meeting Nigeria’s needs despite demand volatility. “There has been speculation about true Nigerian demand. Demand has faced disruptions from pricing changes and currency devaluation, leading at times to volatility,” he explained.

Bird expressed optimism that stable pricing and the availability of affordable, high-quality fuel would restore consumption growth. “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 rumours of operational disruptions, confirming that the refinery continues to deliver 50 million litres daily. “Whenever offtake has required it, marketers have been able to lift those volumes,” Bird concluded.

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