The Chief Executive Officer of the Dangote Petroleum Refinery & Petrochemicals (DPRP), David Bird, has stated that the refinery is ready to compete in Nigeria’s petroleum market under import-parity pricing, provided regulators ensure fair competition.
Bird made the remarks during a media briefing attended by Nairametrics in Lagos on Monday.
He emphasized the need for equitable regulatory enforcement to sustain healthy competition in the downstream sector.
He also reiterated the refinery’s commitment to meeting domestic fuel demand amid global market volatility.
What they are saying
Bird stressed that the refinery is willing to compete for market share as long as a level playing field is maintained for Euro 5 standard gasoline, which is now available to Nigerian consumers.
- “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,” he said.
- “Dangote Refinery will continue to meet Nigeria’s fuel demand despite global supply disruptions and market volatility. Domestic refining gives Nigeria supply security, ensuring the country avoids fuel shortages and queues even when global markets are disrupted,” Bird added.
He clarified that the refinery does not receive crude oil at discounted rates under the Federal Government’s crude-for-naira arrangement, purchasing Nigerian crude at international benchmark prices.
The CEO noted that global market instability is hitting import-dependent countries hardest, reinforcing the value of domestic refining for energy security.
More insights
Bird highlighted the extreme volatility in global crude oil markets and the operational challenges the refinery faces as a result.
- “Global oil markets are experiencing extreme volatility, with crude prices rising from the mid-$60 range to nearly $120 per barrel within a week,” he said.
The refinery’s operations are fully exposed to international commodity market factors, including crude oil prices, freight rates, insurance, and financing costs.
Tanker freight costs have surged sharply, increasing from about $800,000 to roughly $3.5 million per shipment.
Despite these challenges, the refinery continues to operate at full capacity.
- “Dangote Refinery operates at its full nameplate capacity of about 650,000 barrels per day, with potential to increase production to around 700,000 barrels per day,” Bird said.
What you should know
Owned by African industrialist Aliko Dangote, the refinery is considered a transformative project for Nigeria’s energy sector.
- Last year, the refinery said that it does not compete with Nigerian National Petroleum Company Limited (NNPC Ltd), as the two companies play complementary roles in Nigeria’s energy and refining environment.
- It was designed to reduce the country’s reliance on imported refined petroleum products while strengthening domestic fuel supply.
The Dangote Refinery is now a central player in Nigeria’s downstream sector, capable of meeting the country’s fuel demand independently of international supply shocks.
