Dangote Refinery don reduce di ex-depot price of Automotive Gas Oil, wey dem dey call diesel, from N1,800 to N1,600 per litre. Dis N200 reduction come just few days after di Nigerian Midstream and Downstream Petroleum Regulatory Authority, wey dem dey call NMDPRA, reportedly grant fresh import licences to five petroleum marketers.
Di Petroleum Products Retail Outlets Owners Association of Nigeria, wey dem dey call PETROAN, say several vessels wey carry imported petroleum products don arrive Nigeria for di weekend. Dis one increase supply volumes and dey mount pressure on local pricing.
Dangote Refinery don recently challenge di issuance of di import licences for court, dey argue against continued importation of petroleum products wey dem fit refine locally. But stakeholders say di latest diesel price cut dey show di market benefits of a competitive downstream sector.
Di National Public Relations Officer of PETROAN, Dr Joseph Obele, for one statement describe di development as a positive signal for consumers and di broader economy. According to am, di reduction for diesel price dey reflect di impact of increased competition following di approval wey dem grant to importers by NMDPRA.
“Dis development dey widely seen as a positive impact of increased competition for di downstream petroleum sector,” Obele state. He add say di new pricing fit create pressure for marketers wey recently import products at higher landing costs, dey note say Dangote Refinery revised price dey below di estimated import landing cost.
“Di reduction dey reportedly aimed at creating market frustration for marketers wey recently import products from di international market, as di new selling price Dangote Refinery dey significantly lower than di landing cost of di importers,” he yarn.
Obele also warn against monopoly for di petroleum industry, dey insist say sustained competition remain di best route to lower fuel prices and improved energy affordability for Nigerians. “All hail competition and say no to monopoly for di petroleum industry. Di more di competition, di better prices consumers go enjoy,” he tok.
Di latest adjustment dey expected to trigger further reactions across di downstream value chain as marketers and depot operators dey struggle to remain competitive amid fluctuating global oil prices and foreign exchange pressures. Dem note say di move fit signal di beginning of a broader pricing battle among operators wey dey seek market dominance for Nigeria fully deregulated petroleum sector.
