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Dangote Refinery has cut the depot price of Automotive Gas Oil (AGO), commonly known as diesel, by N200 per litre.
The move intensifies competition in Nigeria’s downstream petroleum sector and has forced a major price adjustment.
The reduction took the price from N1,800 to N1,600 per litre, coming days after several vessels carrying imported petroleum products reportedly berthed at Nigerian ports.
The import was despite the recent legal action by Dangote Refinery against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over the regulator’s decision to grant five import licences to marketers for petroleum products.
Observers say the timing of the price cut is significant as the new N1,600 selling price from Dangote Refinery is reportedly lower than the current landing cost for marketers who recently imported diesel from the international market.
The move is seen as a strategy to undercut imported supply and retain market share.
Dr Joseph Obele, National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), described the development as a direct result of market rivalry.
“All hail competition and say no to monopoly in the petroleum industry. The more the competition, the better prices consumers will enjoy,” Obele said in Lagos on Wednesday.
He noted that increased competition in the downstream sector is already delivering price relief to consumers.
According to him, the diesel price reduction marks one of the sharpest single drops since the deregulation of the sector and signals a new phase of pricing battles between local refining and importation
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