MD Clarifies ₦739 Pump Price Controversy, Insists Refinery Does Not Set Retail Prices…
Dangote Refinery Plc has dismissed allegations that it offers special pricing advantages to MRS Oil Nigeria Plc or engages in practices that could distort competition in Nigeria’s downstream petroleum market.
Speaking on Wednesday during a media briefing at the refinery complex in Lagos, the newly appointed Managing Director of Dangote Refinery Plc, David Bird, said all marketers purchase petroleum products under identical terms at the refinery gate.
His comments followed public concerns over reports that MRS Oil was selling petrol at a retail pump price of ₦739 per litre, raising questions about possible preferential treatment.
Addressing the issue, Bird stressed that the refinery neither controls pump prices nor gives any marketer a pricing edge.
“I cannot speak to retail prices,” he said. “What I can say very clearly is that there is absolutely no preferential pricing. Every truck that exits this refinery purchases product at ₦699 per litre ex-gate. There is no difference between customers.”
Bird explained that Nigeria’s downstream petroleum sector operates under a deregulated framework, allowing marketers to independently determine pump prices based on their operational costs and business strategies.
“The downstream market is fully competitive. Marketers are free to price their products as they see fit, and consumers ultimately decide where to buy based on convenience, location, or brand preference,” he noted.
He further clarified that MRS Oil does not enjoy any exclusive arrangement with the refinery, adding that decisions around direct lifting and distribution are commercial choices driven by efficiency, quality assurance, and regulatory compliance.
According to Bird, fuel quality remains consistent across outlets, as regulatory oversight ensures uniform standards regardless of where consumers purchase petrol.
“It’s important for consumers to understand the source of the fuel they buy. Nigeria has a strong regulator that enforces compliance, so motorists can be confident they are getting the same quality product at any station,” he said.
On domestic supply capacity, Bird disclosed that the refinery is currently producing about 50 million litres of fuel daily, a volume he said is sufficient to meet national requirements despite fluctuations in consumption in recent years.
“There has been a lot of debate around actual fuel demand in Nigeria. I won’t speculate on exact figures,” he said, noting that changes in pricing, foreign exchange volatility, and economic pressures have at times disrupted demand and even led to demand decline.
However, the Dangote Refinery boss expressed optimism that improved price stability and the availability of affordable, high-quality fuel would support a rebound in consumption.
“With stable pricing and abundant supply, demand growth should resume. We are well-positioned to meet any increase in demand over the next three years, and after our planned expansion, our capacity will more than cover future needs,” Bird stated.
He also dismissed rumours of production challenges at the refinery, assuring stakeholders that operations remain stable.
“We have consistently delivered 50 million litres per day, and whenever marketers require those volumes, they have been able to lift them,” he added.
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