DANGOTE REFINERY SPARKS PETROL PRICE WAR IN LAGOS
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Aliko Dangote’s new 650,000-barrel-a-day refinery has initiated a price war in Lagos’s downstream oil industry by reducing petrol prices for distributors. This move has led the state-owned Nigerian National Petroleum Corporation (NNPC) to follow suit, resulting in petrol prices dropping to N860 per litre.
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Contributing factors include declining global oil prices and the removal of government fuel subsidies, compelling oil marketers to compete on market dynamics. While Dangote’s strategic price cuts aim to provide economic relief and support President Tinubu’s policies, concerns about potential market monopolization have arisen, reminiscent of Dangote’s previous dominance in the cement industry.
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Industry experts emphasize the need for sustained competition to prevent monopolistic control.
