(DDM) – An escalating fuel price war between the Dangote Refinery and the Nigerian National Petroleum Company Limited has begun to push petrol prices downward, raising expectations of relief for consumers across the country.
DDM gathered that the assurance was given by the Group Chief Executive Officer of NNPCL, Mele Kyari, who said the growing competition in Nigeria’s downstream petroleum sector would ultimately favour Nigerians.
Kyari explained that price competition is a natural outcome of market liberalisation and should not be feared by consumers or industry stakeholders.
He said the entry of large-scale private refiners, particularly the Dangote Refinery, has introduced healthy rivalry that encourages efficiency and cost reduction.
According to him, the era when a single supplier dictated fuel prices in Nigeria is gradually ending.
He noted that Nigerians are already witnessing modest price drops at some filling stations as operators adjust to the new competitive environment.
Kyari stressed that competition compels suppliers to innovate, reduce waste, and pass savings to consumers.
He described the fuel market as a buyer’s market when competition is allowed to thrive.
The NNPCL boss stated that deregulation was never designed to make fuel permanently expensive, but to create a sustainable system driven by market forces.
He added that artificial price controls in the past discouraged investment and led to persistent fuel scarcity.
Kyari said the ongoing rivalry would also reduce Nigeria’s dependence on imported refined petroleum products.
He explained that domestic refining capacity is increasing, which lowers foreign exchange pressure and transportation costs.
According to him, lower logistics and importation costs naturally translate into cheaper fuel prices over time.
Kyari also dismissed fears that competition between NNPCL and Dangote Refinery could destabilise the sector.
He said both entities are strong enough to coexist and compete fairly under existing regulations.
He emphasised that NNPCL is no longer a monopoly but a commercial entity operating under market realities.
Kyari added that the company welcomes competition because it aligns with global best practices in the energy sector.
He said countries with competitive fuel markets tend to enjoy better pricing stability and supply reliability.
The NNPCL chief also assured Nigerians that the federal government remains committed to protecting consumers from exploitative pricing.
He explained that regulatory agencies would continue to monitor pricing behaviour to prevent market abuse.
Kyari noted that while prices may fluctuate, the long-term trend under competition is downward pressure on costs.
He urged Nigerians to be patient as the market adjusts to new supply dynamics.
Industry analysts say the Dangote Refinery’s large production capacity has altered the balance of power in Nigeria’s fuel supply chain.
They argue that increased local refining limits the ability of any single player to control prices.
Experts also believe that sustained competition could lead to uniform pricing across regions as supply improves.
Some marketers have already started revising pump prices in response to cheaper supply options.
Consumer advocacy groups have welcomed the development, describing it as a positive outcome of subsidy removal.
They argue that competition, rather than government subsidies, offers a more sustainable path to affordable fuel.
However, they caution that transparency and strong regulation remain essential.
As the price war intensifies, Nigerians are watching closely to see whether the promised benefits translate into lasting relief at the pump.
For many households and businesses struggling with high energy costs, even small price reductions could make a significant difference.