Paul Alaje, a financial analyst and Chief Economist at SPM Professionals, described the fuel price competition between NNPCL and Dangote Refinery as a healthy one.
He stated that should the competition continue, Nigerians may see the fuel price drop to between N650 and N800 per litre.
Alaje spoke in an interview with Channels Television on Tuesday, where he emphasized the competition between both entities. He, however, warned that there will be risks should the competition between them stop for whatever reason.
He also added that more refineries are needed in Nigeria to boost the fuel price competition and not leave it only to the big dogs currently in the playing field.
Alaje said, “If there is more competition, because of the interest of capitalists to make a profit, eventually they will continue to reduce petrol prices if they don’t agree. Nigerians should be happy with their non-agreement. Once there is an agreement, they can fix prices. The truth is that you and I may have no option.
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“In the beginning, when you have two major giants, Dangote and NNPCL, all of these are important. The danger is that if NNPCL fizzles out, you face a pure capitalist, and you don’t want to know the implication. If it is Dangote Refinery that stops, you are back to Egypt. We need to have more players in the market.
“We, in fact, want more of the competition to go on because this is the consequence of deregulation. I should be buying fuel between N650, N750, and N800 per litre. But if any of them fizzles out, be ready to buy at over N1000 per litre again,” he said.
In late February, NaijaEyes recalls that Dangote slashed its depot petrol price to N825 per Litre, all the way from N890 per Litre.
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