The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) says growing competition in the downstream petroleum sector is responsible for the recent drop in diesel prices across the country.
The association linked the price movement to increased supply in the market following the entry of imported petroleum products, which have added pressure on local pricing structures.
Checks in the market showed that the price of Automotive Gas Oil (diesel) has fallen from about ₦1,800 per litre to roughly ₦1,600 per litre, reflecting a decrease of around ₦200.
Speaking on the development, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, said the reduction was a clear outcome of market rivalry rather than any single pricing decision. He explained that new supply inflows, including imported cargoes, helped reshape competition in the sector.
He also noted that regulatory approvals allowing some marketers to import petroleum products contributed to increased availability, which in turn influenced pricing across the value chain.
According to him, the situation shows how a deregulated downstream market responds when multiple suppliers are active, adding that consumers are likely to benefit from more competitive pricing under such conditions.
Obele suggested that pricing adjustments by major market players were influenced by the arrival of imported products competing directly in the local market.
PETROAN maintained that broader participation in fuel supply would help discourage market dominance and support more stable and affordable fuel prices for Nigerians.
The development comes amid ongoing disagreement in the sector over fuel importation. While Dangote Petroleum Refinery has challenged import licences issued to marketers, arguing that they weaken local refining capacity, the Nigerian National Petroleum Company Limited has defended the approvals, saying competition is necessary to prevent monopoly and ensure fair pricing.
Industry players remain divided on the issue, with some calling for stronger protection of domestic refining, while others argue that open competition and multiple supply sources are essential for price stability and energy security.
