An economist, Paul Alaje, has warned that petrol prices could skyrocket beyond ₦1,000 per litre if the ongoing price competition between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery comes to an end.
Speaking on Politics Today, a Channels Television programme on Tuesday, Alaje described the situation as a “price war” that ultimately benefits consumers by keeping fuel costs lower.
“You may want to call it a price war, but in economics, when a duopoly fights, it is the best for the populace because they will drive themselves to neutral profits,” he explained.
Alaje stressed that Nigerians should appreciate the current competition in the petroleum sector, as it prevents monopolistic pricing and ensures that fuel remains somewhat affordable.
“If any of them (NNPCL or Dangote Refinery) fizzles out, be ready to buy petrol at over ₦1,000 again,” he cautioned.
The warning comes amid fluctuating fuel prices and ongoing efforts by Dangote Refinery to disrupt the market with competitive pricing.
Reports indicate that the refinery recently reduced petrol prices to ₦860 per litre in Lagos.
Economic analysts believe that continued competition in the oil sector will determine the future stability of fuel prices in Nigeria.
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