Professor Emeritus of Petroleum Economics and energy analyst, Wumi Iledare, has warned Nigerians against celebrating the recent reduction in petrol prices by the Dangote Refinery, arguing that the move carries deeper long-term risks for the country’s downstream oil sector.
Reacting on Friday to the refinery’s decision to slash its ex-depot petrol price by ₦129 to ₦699 per litre, Iledare acknowledged that the cut could provide temporary relief for consumers. However, he cautioned that the broader implications could be damaging if the market continues to tilt towards dominance by a few powerful players.
According to him, the development highlights growing structural concerns in Nigeria’s downstream sector, which he described as rapidly evolving into an oligopoly. He warned that allowing a single dominant supplier to dictate market trends could ultimately undermine competition and harm consumers in the long run.
Iledare stressed the need for firm and proactive regulation, noting that price reductions should not become a tool to edge out independent marketers or consolidate market control. He called on downstream and competition regulators to intensify oversight by monitoring allocation processes, enforcing transparency and protecting smaller operators whose participation is vital for a balanced market.
While admitting that the price cut appears beneficial in the short term, the petroleum economist said inadequate regulation could eventually weaken affordability and destabilise the market. He urged regulators to remain vigilant and ensure that competition is preserved in the downstream sector.
Despite the refinery’s price adjustment, petrol pump prices in Abuja have remained largely unchanged, selling between ₦910 and ₦937 per litre. Dangote Refinery’s latest reduction, which represents about a 15 per cent cut, has continued to generate debate among industry stakeholders and the general public.