Uche Cecil Izuora
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has commended the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) for fostering competition in the country’s downstream oil sector which has led to fair pricing of products.
It will be recalled that recently Dangote Refinery took legal action after NMDPRA granted five import licences to marketers for the importation of petroleum products.
The National Public Relations Officer (PRO) of PETROAN, Dr Joseph Obele, said the local market over the weekend witnessed a sharp drop in the price of diesel.
Obele, attributed it to arrival of several vessels at the weekend which forced the Dangote refinery to reduce the price of AGO commonly known as diesel, by ₦200.
“The reduction is from ₦1,800 to ₦1,600. This development is widely seen as a positive impact of increased competition in the downstream petroleum sector.
“The reduction was reportedly aimed at creating market frustration for marketers who recently imported products from the international market, as the new selling price Dangote Refinery is significantly lower than the landing cost of the importers.
Dangote Refinery had recently challenged issuance of the import licences in court, arguing against continued importation of petroleum products that can be refined locally.
However, stakeholders say the latest diesel price cut demonstrates the market benefits of a competitive downstream sector.
Obele, described the development as a positive signal for consumers and the broader economy.
According to him, the reduction in diesel price reflects the impact of increased competition following the approval granted to importers by the NMDPRA.
“This development is widely seen as a positive impact of increased competition in the downstream petroleum sector,” Obele stated.
He added that the new pricing may create pressure for marketers who recently imported products at higher landing costs, noting that Dangote Refinery’s revised price is currently below the estimated import landing cost.
“The reduction was reportedly aimed at creating market frustration for marketers who recently imported products from the international market, as the new selling price Dangote Refinery is significantly lower than the landing cost of the importers,” he said
Obele also warned against monopoly in the petroleum industry insisting that sustained competition remains the best route to lower fuel prices and improved energy affordability for Nigerians.
“All hail competition and say no to monopoly in the petroleum industry. The more the competition, the better prices consumers will enjoy,” he said.
The latest adjustment is expected to trigger further reactions across the downstream value chain as marketers and depot operators struggle to remain competitive amid fluctuating global oil prices and foreign exchange pressures.
It was noted that the move could signal the beginning of a broader pricing battle among operators seeking market dominance in Nigeria’s fully deregulated petroleum sector.