ABUJA, Nigeria (VOICE OF NAIJA)- The Petroleum Products Retail Outlets Owners Association of Nigeria has stated that growing competition in the downstream petroleum sector compelled the Dangote Petroleum Refinery to reduce the ex-depot price of diesel by N200 per litre.
Findings from Petroleumprice.ng showed that diesel prices dropped from N1,800 per litre to N1,600 per litre.
The National Public Relations Officer of PETROAN, Dr Joseph Obele, made the association’s position known in a statement issued on Tuesday, describing the reduction as evidence that competition, rather than monopoly, would ultimately lead to lower fuel prices for Nigerians.
According to him, the refinery cut the price of Automotive Gas Oil, also known as diesel, from N1,800 per litre to N1,600 per litre following the arrival of newly imported petroleum products into the Nigerian market.
Obele said, “The Dangote refinery recently took legal action after NMDPRA granted five import licences to marketers for the importation of petroleum products.
“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,” he stated.
The PETROAN spokesperson described the reduction as a direct outcome of increased competition within the deregulated downstream petroleum sector.
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“This development is widely seen as a positive impact of increased competition in the downstream petroleum sector,” Obele said.
He further explained that the price slash may have been strategically aimed at importers whose products were already on their way into the country, noting that “the new selling price at the Dangote refinery is significantly lower than the landing cost of the importers”.
Obele argued that the development further reinforced opposition to monopoly in the petroleum industry.
“All hail competition and say no to monopoly in the petroleum industry. The more the competition, the better prices consumers will enjoy,” he added.
The development comes amid an ongoing legal battle involving the Dangote refinery, the Attorney General of the Federation, and the Nigerian National Petroleum Company Limited over fuel importation into the country.
The refinery had approached the Federal High Court in Lagos to challenge the issuance of petroleum import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to certain marketers and oil trading companies.
In the suit, the Dangote refinery reportedly argued that the continued approval of import permits was undermining local refining efforts and discouraging investments in domestic petroleum production.
The refinery also maintained that Nigeria possesses sufficient local refining capacity to satisfy domestic demand, questioning the need for continued fuel imports.
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However, the Nigerian National Petroleum Company Limited informed the Federal High Court in Lagos that petroleum products from the Dangote Petroleum Refinery and Petrochemicals FZE are sold at “significantly high and fluctuating market prices”, warning that approving the refinery’s requests could give it monopoly control over Nigeria’s downstream petroleum market.
The national oil company made the submission in a counter-affidavit opposing the Dangote refinery’s originating summons in Suit No. FHC/L/CS/857/2026 before the Federal High Court, Lagos Judicial Division.
Likewise, marketers under the Petroleum Products Retail Outlet Owners Association of Nigeria backed the NNPC, insisting that competition must be sustained in the sector to prevent price exploitation and ensure lower fuel prices through multiple supply sources.
Industry stakeholders, however, remain divided, with some advocating unrestricted fuel imports to encourage competitive pricing, while others believe local refineries should be protected to guarantee sustainability and energy security.