A financial expert, Paul Alaje, has predicted that the price of petrol in Nigeria could drop to between N650 and N800 per litre if the competition between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) continues.
Speaking on Channels Television, Alaje explained that the recent petrol price reductions by both companies have triggered a price war. He warned that if either Dangote Refinery or NNPCL stops operating, fuel prices could rise above N1,000 per litre.
He emphasized the need for more refineries in Nigeria to encourage competition and prevent any one company from controlling prices. According to him, Nigerians benefit from the ongoing competition, as it prevents price-fixing and keeps fuel costs lower.
Alaje stated that deregulation is working in favor of consumers, and more competition would lead to further price reductions. However, if one of the major players exits the market, fuel prices could increase again.
The latest petrol price cuts by both NNPCL and Dangote Refinery have intensified competition in Nigeria’s fuel market.
