Dangote Refinery on Tuesday reduced the ex-depot price of Automotive Gas Oil, commonly known as diesel, by ₦200 per litre from ₦1,800 to ₦1,600, only to reverse the decision hours later, settling at ₦1,700 per litre effective 27th May 2026, amid fresh debate about pricing and competition in Nigeria's downstream petroleum sector.
The National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria, Dr Joseph Obele, linked the initial reduction to the arrival of imported petroleum products by marketers who had obtained licences from the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
He said the NMDPRA had granted five import licences, and several of the vessels carrying those imports arrived over the weekend before the refinery responded with the price cut. "All hail competition and say no to monopoly in the petroleum industry. The more the competition, the better prices consumers will enjoy," Dr Obele said.
The reduction was widely seen as a deliberate move to undercut the importers, as the refinery's new price was significantly lower than the landing cost of the products brought in from the international market.
The refinery subsequently reversed the reduction. According to its communiqué, the ex-depot price was adjusted from ₦1,600 to ₦1,700 per litre to protect coastal traders who had purchased diesel at higher costs and were still holding significant stock at the time of the initial price cut.
Industry operators say the move is aimed at preventing losses among these marketers and ensuring a fair pricing adjustment across the supply chain.
The reversal means diesel now trades at ₦1,700 per litre at the Dangote depot, ₦100 above the short-lived ₦1,600 price but still ₦100 below the original ₦1,800 at which the week began.