Fuel prices have dropped across Nigeria following a renewed dispute between Aliko Dangote, owner of Dangote Refinery, and the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed.
On Sunday, Dangote accused Ahmed of encouraging fuel imports despite the capacity of his refinery.
He also repeated claims that Ahmed paid about $5 million (over ₦7 billion) in school fees for his children in Switzerland. NMDPRA had earlier dismissed the allegation as false.
The claim was first made by a group of civil society organisations.
However, on Monday, the group withdrew the allegation, saying it was based on wrong information. The group stated that Ahmed’s children studied on scholarships and completed their education before he became NMDPRA boss.
Despite the retraction, the allegations caused concern in the downstream oil sector.
Around the same time, Dangote Refinery reduced its gantry price of petrol from ₦828 to ₦699 per litre. This move is seen as an attempt to outprice fuel importers, whose ex-depot prices were around ₦824 per litre.
Dangote said Nigerians should not buy petrol for more than ₦740 per litre in December and January. He also said he would use his resources to ensure fuel prices fall.
Some industry stakeholders believe this is a market strategy by Dangote to push marketers to buy fuel from his refinery and dominate the market.
Checks showed that some filling stations in Abuja reduced pump prices, while others kept prices unchanged but planned further reductions. Several private depots also lowered their prices, though some ex-depot prices remained high.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) said Nigerians would begin to see fuel price reductions nationwide from Tuesday and in the coming days. IPMAN urged Dangote and NMDPRA to work together to ensure steady fuel supply and affordable prices.
Despite the drop in fuel prices, transport fares in Abuja and other major cities have not changed.
Meanwhile, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, warned that the price cuts may not last. He said the feud between Dangote and NMDPRA would not benefit Nigerians in the long run.
Gillis-Harry denied claims that anyone was trying to sabotage the Dangote Refinery, describing such claims as industry rivalry.
He warned against what he called unsustainable pricing and said artificially low fuel prices could later harm the economy.
He cautioned Nigerians not to be misled by short-term price reductions, saying correct pricing is necessary for a stable market.
The House of Representatives Committee on Petroleum Resources (Downstream) has called on Dangote and NMDPRA to stop the conflict.
NMDPRA data released in November showed that Nigeria consumes about 52.9 million litres of petrol daily, but Dangote Refinery supplies only 19.5 million litres.
The rest still comes from imports. This is why the government delayed plans to introduce a 15 percent import duty on refined petrol.
Dangote has challenged the accuracy of the regulator’s data. This is not the first time both parties have clashed, as they previously disagreed in 2024 over claims about fuel quality from the refinery.
