KEY POINTS
- Dangote Refinery says it is ready to compete under import-parity pricing if regulators ensure a fair market environment for all players.
- The refinery purchases crude oil at international benchmark prices and is fully exposed to global market volatility.
- Operating at 650,000 barrels per day, the refinery aims to strengthen Nigeria’s energy security and reduce dependence on imported fuel.
The Chief Executive Officer of Dangote Petroleum Refinery & Petrochemicals, David Bird, has reaffirmed the refinery’s readiness to compete in Nigeria’s petroleum market under an import-parity pricing system, provided regulators ensure a fair and balanced competitive environment.
Bird made the remarks on Monday during a media briefing in Lagos attended by journalists, including Nairametrics.
He emphasised that sustainable competition in Nigeria’s downstream petroleum sector depends on transparent and equitable regulatory enforcement.
According to him, the refinery is prepared to compete for market share in the country’s fuel market, especially as Nigerian consumers now have access to higher-quality Euro 5 standard gasoline.
Commitment to Meeting Nigeria’s Fuel Demand
Bird reiterated the refinery’s commitment to ensuring a stable domestic fuel supply, even amid disruptions and volatility in the global energy market.
He stressed that local refining is critical to Nigeria’s energy security because it shields the country from supply shocks that often affect import-dependent economies.
“We are willing to compete for import-parity pricing provided the regulator enforces a level playing field for Euro 5 gasoline that Nigerians now enjoy. We are happy to compete,” Bird said.
He added that the refinery will continue to supply fuel to the Nigerian market regardless of instability in the global oil market.
According to him, domestic refining helps Nigeria avoid the fuel shortages and long queues that often occur when international supply chains are disrupted.
Bird also addressed concerns about the refinery’s crude oil supply arrangements under the Federal Government’s crude-for-naira policy.
He clarified that the refinery does not receive Nigerian crude at discounted prices. Instead, it purchases crude oil at international benchmark rates, just like other buyers in the global market.
This means the refinery’s operations are directly affected by global commodity price movements, including fluctuations in crude oil prices and associated logistics costs.
