Dangote Petroleum Refinery has officially refuted widespread claims that it offers preferential pricing to MRS Oil Nigeria Plc, stating that all marketers purchase petrol at the same ex-depot rate. This clarification was provided amidst public scrutiny over MRS filling stations selling Premium Motor Spirit (PMS) at ₦739 per litre nationwide, a price point lower than many competitors.
Uniform Pricing at the Refinery Gate
During a press briefing at the Dangote Refinery complex in Lagos on Wednesday, January 14, 2026, the refinery's Managing Director, David Bird, was emphatic in his denial. He stated that the company does not set retail pump prices and does not favour any marketer in its sales structure.
"Every truck that leaves this site purchases product at ₦699 ex-gate from the refinery's perspective. There is no differentiation among customers," Bird declared. He clarified that his role does not extend to commenting on final retail pricing, but he could assure the public of zero preferential treatment at the source.
According to Bird, the final price consumers pay is shaped by individual marketers' costs, including logistics, operational overheads, profit margins, and distribution strategies. These factors, not any directive from the refinery, create the price variations seen across different stations.
Market Forces Drive Retail Competition
Bird explained that Nigeria's downstream petroleum sector is fully deregulated, meaning marketers have the autonomy to set their pump prices based on commercial realities. "What a marketer chooses to post as a retail price is entirely up to them," he noted, describing the environment as a fully competitive market.
He emphasized that price differences are a natural outcome of this competition and operational efficiency, not evidence of market distortion. Consumers, he added, have the freedom to choose where to buy fuel based on factors like convenience, brand loyalty, or proximity.
Addressing the specific case of MRS, Bird suggested that any marketer's ability to offer lower prices is likely tied to their commercial decisions and operational efficiency in logistics and compliance. He also urged consumers to consider fuel quality, which is uniformly regulated, alongside price.
Strong Production Capacity Meets National Demand
On the issue of supply, Bird disclosed that the Dangote Refinery is currently producing about 50 million litres of fuel daily. He asserted this volume is sufficient to meet Nigeria's current domestic demand.
He acknowledged recent volatility in fuel consumption patterns, attributing it to price adjustments and currency devaluation, which have at times led to "demand destruction." However, he expressed confidence that improved price stability would support a rebound in consumption.
"We have consistently delivered 50 million litres per day," Bird said, dismissing rumours of operational challenges. He confirmed that marketers have been able to lift the required volumes whenever needed.
The price landscape is dynamic, with reports indicating that the competition has intensified further. A recent market survey showed that some retail outlets in Lagos, Ogun, and other cities have begun selling PMS at prices even lower than the ₦739 benchmark, signaling a deepening price war among marketers, depot owners, and importers in the deregulated market.
