KEY POINTS
- Nigerian oil marketers have asked the FCCPC to investigate Dangote Refinery over alleged anti-competitive pricing practices.
- They claim the refinery cuts prices after sales without refunding earlier buyers, causing losses, especially for bulk purchasers.
- Dangote Refinery has not yet responded to the allegations.
A group of Nigerian downstream oil marketers has petitioned the Federal Competition and Consumer Protection Commission, FCCPC, seeking an investigation into what they describe as anti-competitive and market-distorting pricing practices by Dangote Refinery.
The consortium alleged that the Lagos-based refinery is abusing its dominant position in the downstream petroleum market through pricing strategies that undermine fair competition, disadvantage bulk buyers, and threaten the sustainability of their businesses.
In a statement made available to journalists, the marketers said the FCCPC was established to curb anti-competitive conduct, price manipulation, and monopolistic tendencies across sectors of the economy, including petroleum downstream operations.
Allegations of sudden price cuts after sales
According to the petition, Dangote Refinery allegedly fixes product prices at the point of sale, only to announce substantial price reductions shortly after buyers have completed transactions.
The marketers claimed that earlier purchasers are not refunded the price difference, leaving them to absorb losses while later buyers benefit from the lower prices.
“For instance, a buyer may purchase a product at ₦700 per unit, only for the refinery to announce a ₦100 price drop shortly after loading has been completed,” the statement said.
They added that this practice creates unpredictability in the market and erodes confidence among buyers.
Bulk buyers say they are being penalised
The consortium said the alleged pricing pattern is particularly harmful to bulk buyers who lift millions of litres at a time.
They claimed that price reductions often occur immediately after large-volume purchases, effectively penalising scale and discouraging volume-based transactions.
“Once bulk buyers load their products, the refinery announces a price cut. This penalises scale, discourages volume purchases and injects uncertainty into the market,” the marketers said.
They described the practice as a deliberate disincentive to business. The marketers argued that Dangote Refinery’s conduct amounts to an abuse of market dominance, especially given its expanding influence in domestic fuel supply following the removal of petrol subsidies and a decline in imports.
They warned that price fixing and manipulation are prohibited under Nigerian law and fall squarely within the FCCPC’s enforcement powers, which include imposing sanctions and initiating legal action.
The consortium urged petroleum sector regulators to collaborate with the FCCPC to ensure a comprehensive review of the refinery’s pricing model and its impact on competition and consumers.
