The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has linked the recent reduction in diesel prices by Dangote Petroleum Refinery to growing competition in Nigeria’s downstream petroleum sector, insisting that market rivalry — not monopoly — will ultimately benefit consumers.
The association said the refinery’s decision to slash the ex-depot price of Automotive Gas Oil, popularly known as diesel, by N200 per litre came shortly after imported petroleum products entered the Nigerian market.
Checks on petroleum pricing platforms showed that diesel prices dropped from about N1,800 per litre to around N1,600 per litre in recent days, triggering fresh debate over competition, fuel importation and market control in the sector.
Speaking in a statement issued on Tuesday, PETROAN’s National Public Relations Officer, Dr Joseph Obele, described the development as proof that increased competition would force fuel prices down and protect consumers from exploitative pricing.
“The Dangote refinery recently took legal action after NMDPRA granted five import licences to marketers for the importation of petroleum products,” Obele said.
“Over the weekend, several of the vessels reportedly arrived, and today the refinery reduced the price of AGO, commonly known as diesel, by N200. The reduction is from N1,800 to N1,600.”
According to him, the reduction appeared strategically timed to counter imported products already heading into the Nigerian market.
Obele argued that the refinery’s latest pricing decision strengthened the case against monopoly in the petroleum industry.
“This development is widely seen as a positive impact of increased competition in the downstream petroleum sector,” he stated.
“All hail competition and say no to monopoly in the petroleum industry. The more the competition, the better prices consumers will enjoy.”
The latest development comes amid an ongoing legal dispute involving the Dangote refinery, the Nigerian National Petroleum Company Limited and the Nigerian Midstream and Downstream Petroleum Regulatory Authority over the continued issuance of fuel import licences in Nigeria.
Dangote refinery had approached the Federal High Court in Lagos challenging the import permits granted to some marketers and petroleum trading firms by the NMDPRA.
The refinery argued in court filings that Nigeria now possesses sufficient local refining capacity to satisfy domestic fuel demand and that continued importation of petroleum products could undermine local refining investments and discourage industrial growth.
However, the NNPC opposed the refinery’s position, warning the court that granting Dangote’s requests could hand the company excessive control over the downstream market.
In a counter-affidavit before the Federal High Court in Lagos, the national oil company stated that petroleum products supplied by the refinery were being sold at “significantly high and fluctuating market prices,” raising fears about potential market dominance.
PETROAN also sided with the NNPC in supporting a competitive downstream market structure, insisting that allowing multiple import sources would create pricing stability and shield consumers from arbitrary hikes.
Industry stakeholders remain divided over the issue.
While supporters of unrestricted imports argue that open competition encourages price moderation and supply stability, advocates of local refining protection believe Nigeria must shield domestic refiners from excessive foreign competition to guarantee long-term energy security and industrial sustainability.
The debate has intensified since the commencement of operations at the Dangote refinery, widely regarded as Africa’s largest refining facility and a major pillar in Nigeria’s push to reduce dependence on imported petroleum products.
Analysts say the outcome of the legal battle and the broader pricing war could significantly shape the future structure of Nigeria’s deregulated petroleum market in the coming months.
