A leading energy expert has cautioned Nigerians against celebrating the recent decision by Dangote Refinery to reduce its petrol price by 15 percent to N699 per liter. Professor Wumi Iledare, a renowned petroleum economist, warned that while the move may bring temporary relief, it poses long-term risks to the country’s downstream oil sector.
According to Iledare, the price cut is a symptom of a deeper structural issue in the sector, which is rapidly becoming an oligopoly. He emphasized the need for strong regulatory measures to prevent market concentration and protect smaller players. “A single dominant supplier setting the pace in a highly concentrated market demands immediate and uncompromising vigilance,” Iledare stated.
The expert urged downstream and competition regulators to intensify oversight, monitor allocation practices, and enforce transparency to maintain balance and fairness in the sector. While acknowledging the short-term benefits of the price reduction, Iledare cautioned that without rigorous regulation, such moves could eventually harm affordability and market stability.
The Dangote Refinery’s price cut has stirred reactions across the energy sector, with many Nigerians welcoming the move as a respite from high fuel prices. However, despite the reduction, the retail price of petrol in Abuja remains between N910 and N937 per liter. Iledare’s warning highlights the need for a more nuanced approach to the issue, taking into account the potential long-term consequences of unchecked market dominance.
As the Nigerian government continues to grapple with the challenges of the downstream oil sector, experts like Iledare are calling for increased vigilance and regulatory oversight to ensure a level playing field for all players. The situation underscores the complex interplay between market forces, regulatory frameworks, and consumer interests in the energy sector. With the Dangote Refinery’s price cut serving as a catalyst for debate, stakeholders must carefully consider the implications of such moves on the broader energy landscape.
