Fresh competition in the downstream petroleum sector appears to be reshaping market pricing dynamics as the Dangote Refinery has reduced the ex-depot price of Automotive Gas Oil (AGO), popularly known as diesel, by N200 from N1,800 to N1,600 per litre.

The N200 reduction comes days after the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reportedly granted fresh import licences to five petroleum marketers, heightening competition in the domestic fuel market.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said several vessels carrying imported petroleum products arrived Nigeria at the weekend, increasing supply volumes and mounting pressure on local pricing.

Dangote Refinery had recently challenged issuance of the import licences in court, arguing against continued importation of petroleum products that can be refined locally. However, stakeholders say the latest diesel price cut demonstrates the market benefits of a competitive downstream sector.

National Public Relations Officer of PETROAN, Dr Joseph Obele in a statement described the development as a positive signal for consumers and the broader economy.

According to him, the reduction in diesel price reflects the impact of increased competition following the approval granted to importers by the NMDPRA.

“This development is widely seen as a positive impact of increased competition in the downstream petroleum sector,” Obele stated.

He added that the new pricing may create pressure for marketers who recently imported products at higher landing costs, noting that Dangote Refinery’s revised price is currently below the estimated import landing cost.

“The reduction was reportedly aimed at creating market frustration for marketers who recently imported products from the international market, as the new selling price Dangote Refinery is significantly lower than the landing cost of the importers,” he said

Obele also warned against monopoly in the petroleum industry, insisting that sustained competition remains the best route to lower fuel prices and improved energy affordability for Nigerians.

“All hail competition and say no to monopoly in the petroleum industry. The more the competition, the better prices consumers will enjoy,” he said.

The latest adjustment is expected to trigger further reactions across the downstream value chain as marketers and depot operators struggle to remain competitive amid fluctuating global oil prices and foreign exchange pressures.

It was noted that the move could signal the beginning of a broader pricing battle among operators seeking market dominance in Nigeria’s fully deregulated petroleum sector.