PETROAN Links Diesel Price Cut to Increased Competition

The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), represented by Dr. Joseph Obel, announced that the recent reduction in diesel prices is linked to heightened competition in the downstream petroleum sector.

Dangote Petroleum Refinery has slashed its ex-depot price for diesel from ₦1,800 to ₦1,600 per liter. This price cut is viewed as a clear indication of competitive dynamics rather than monopolistic control, which is expected to benefit consumers.

The reduction coincides with the arrival of several vessels carrying imported petroleum products, as Dangote Refinery has recently taken legal action against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to secure five import licenses. The refinery argues that the ongoing issuance of import permits undermines local refining efforts and discourages investment in domestic petroleum production.

The legal dispute is currently before the Federal High Court in Lagos, where Dangote Refinery is challenging the NNPC's limitations on fuel imports.