- Dangote Refinery denies preferential pricing claims, stating all marketers buy petrol at the same rate
- Pricing differences across stations reflect market competition and operational efficiency, not refinery directives
- Refinery produces 50 million litres daily, sufficient to meet Nigeria’s current fuel demand
Dangote Refinery Plc has pushed back against claims that it gives preferential pricing to MRS Oil Nigeria Plc, insisting that petrol is sold to all marketers on the same terms and that retail prices are entirely determined by market forces.
The clarification comes amid public debate over reports that MRS filling stations across Nigeria are selling petrol at ₦739 per litre, lower than prices seen at many competing outlets.
Credit: Bloomberg/Contributor
Source: UGC
Speaking during a press briefing at the Dangote Refinery complex in Lagos on Wednesday, January 14, 2025, the refinery’s Managing Director, David Bird, said the company does not fix pump prices and does not favour any marketer in its pricing structure.
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“No preferential pricing at the refinery gate”
Bird was emphatic that all marketers purchase petrol at a uniform price when lifting directly from the refinery.
“I can’t comment on retail pricing,” he said. “All I can assure you is that there is zero preferential pricing. Every truck that leaves this site purchases product at ₦699 ex-gate from the refinery’s perspective. There is no differentiation among customers.”
According to him, the price at which fuel eventually reaches consumers is influenced by each marketer’s logistics, operating costs, margins and distribution strategies, not by any directive from the refinery.
Deregulated market, competitive pricing
Bird explained that Nigeria’s downstream petroleum sector is fully deregulated, meaning marketers are free to set their own pump prices based on business realities.
“What a marketer chooses to post as a retail price is entirely up to them,” he said. “It is a fully competitive market, and consumers have the freedom to decide where to buy fuel, whether based on convenience, brand loyalty or proximity.”
He stressed that price differences across filling stations are a natural outcome of competition and efficiency, rather than evidence of market distortion.
Why MRS can sell cheaper
Addressing speculation that MRS enjoys special treatment, Bird said any decision by marketers to lift directly from the refinery is purely commercial and often tied to operational efficiency, compliance and logistics.
He also urged consumers to pay attention to fuel quality rather than focusing solely on price, noting that Nigeria has strong regulatory oversight in the downstream sector.
“We have a very strong regulator that enforces fuel quality,” he said. “Consumers should be assured that fuel sold at any station meets the same quality standards.”
Refinery capacity and Supply Outlook
On domestic supply, Bird disclosed that the Dangote Refinery is currently producing about 50 million litres of fuel daily, a volume he said is sufficient to meet Nigeria’s current demand.
He acknowledged recent volatility in fuel consumption, attributing it to price adjustments and currency devaluation, which have at times disrupted demand patterns.
“There has been a lot of speculation about Nigeria’s true fuel demand,” he said. “Pricing changes and currency devaluation have led to volatility and even demand destruction.”
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However, Bird expressed confidence that improved price stability would support a rebound in consumption, adding that the refinery is well-positioned to meet future demand growth.
Credit: Bloomberg/Contributor
Source: Getty Images
“We have consistently delivered 50 million litres per day,” he said, dismissing rumours of operational challenges. “Whenever offtake requires it, marketers have been able to lift those volumes.”
Marketers undercut Dangote, sell below N739 per litre
Legit.ng earlier reported that the battle for market share in Nigeria’s downstream petroleum sector has escalated as several filling stations slashed the pump price of Premium Motor Spirit (PMS) below the N739 per litre benchmark promoted by the Dangote Petroleum Refinery
A weekend survey revealed that petrol prices have now dipped beneath Dangote-backed rates in parts of Lagos, Ogun and other cities, signalling a deepening price war that is reshaping competition among marketers, depot owners and importers.
Findings showed that some retail outlets are now selling PMS at prices lower than those offered by MRS Oil, the main retail partner endorsed by Dangote Refinery to implement the N739 per litre price cut announced in December.