Professor Emeritus of Petroleum Economics and energy expert, Wumi Iledare has explained why Nigerians should not rejoice over Dangote Refinery’s decision to slash its gantry price of petrol by N129 to N699 per liter.

He said though the move may result in momentary relief, in the long-term Nigerians would pay for the consequences of allowing oligarchy to take over the country’s downstream oil sector.

According to him, the price cut portends deeper structural concerns in the downstream oil sector.

Iledare disclosed this in his reaction on Friday to the Dangote Refinery petrol gantry price cut.

Dangote Refinery reduced its fuel price by 15 percent to N699.

However, Iledare cautioned that the growing dominance of a single supplier in Nigeria’s downstream market could pose long-term risks if not properly regulated.

According to him, the sector is “fast becoming an oligopoly,” stressing that strong regulatory measures are urgently needed to prevent market concentration from undermining fair competition.

“A single dominant supplier setting the pace in a highly concentrated market demands immediate and uncompromising vigilance,” Iledare said, stressing that the price cut should not become a strategy to weaken independent marketers or consolidate market power.

He urged downstream and competition regulators to intensify oversight by closely monitoring allocation practices, enforcing transparency, and protecting smaller players whose presence, he noted, is critical to maintaining balance and fairness in the sector.

While acknowledging the short-term benefits of the price reduction, the petroleum economist said that without rigorous regulation, such moves could eventually harm affordability and market stability.

“This price cut is positive, but without strong oversight, it risks reinforcing the very dominance that undermines long-term affordability,” Iledare said, calling on regulators to “stand firm, stay alert, and defend competition in Nigeria’s downstream sector.”

Meanwhile, DAILY POST reports despite the Dangote Refinery’s price cut, the retail price of petrol in Abuja has remained between N910 per liter and N937.

Dangote Refinery had on Friday reduced its ex-depot petrol price to N699 per liter, a move that has stirred reactions across the energy sector and among Nigerians.