Joy as MRS Releases Lower Petrol Prices After Dangote Refineries Rate Cut
by Pascal Oparada, https://www.facebook.com/legitngnews · Legit.ng News · Join- Following the petrol price reduction by the Dangote Refinery, filling stations across the country have adjusted their pumps
- Notably, filling stations selling Dangote petrol have begun to adjust to the new petrol template by the mega refinery
- However, marketers under the aegis of the Petroleum Outlet Owners Association of Nigeria (PETROAN) have kicked against the new rate
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Relief spread across parts of Lagos on Tuesday, December 16, as some MRS filling stations dropped the pump price of petrol to N739 per litre, following Dangote Refinery’s dramatic reduction in its gantry price.
The move sparked excitement among motorists, many of whom abandoned outlets selling petrol above N800 per litre and flocked to stations offering the new rate.
Uneven pricing across states
A visit to several locations showed heavy traffic at MRS outlets, particularly at Alapere in Lagos, where long queues of vehicles stretched far beyond the station premises.
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For many consumers battered by months of high fuel costs, the lower price felt like a long-awaited breather.
Despite the excitement in Lagos, the price cut was not uniform across all locations.
Observations showed that MRS filling stations along the Mowe and Ibafo axis of the Lagos-Ibadan Expressway in Ogun state maintained higher prices of about N875 per litre as of Tuesday evening.
Meanwhile, many non-MRS stations continued to sell Premium Motor Spirit at prices ranging between N850 and N890 per litre, highlighting the sharp disparity in pump prices across the downstream market.
Dangote’s push to force prices down
The development followed Dangote Refinery’s decision last Friday to slash its petrol gantry price from N828 to N699 per litre.
According to a prior report by Legit.ng, President of the Dangote Group Aliko Dangote vowed to ensure that the reduction translated into lower pump prices for consumers.
Dangote expressed frustration that some marketers often kept pump prices high despite reductions at the depot level.
He announced that MRS stations would begin selling petrol at N739 per litre from Tuesday in Lagos, with other partners expected to follow.
He insisted that the era of petrol selling close to N1,000 per litre was over, declaring that for December and January, Nigerians should not pay more than N740 per litre nationwide.
According to him, any attempt to keep prices high amounted to sabotage, which his group was prepared to confront using all available resources.
Marketers push back, cite Petroleum Industry Act
However, the aggressive price drop has triggered strong reactions from industry players.
According to a Punch report, the Petroleum Products Retail Outlet Owners Association of Nigeria, PETROAN, criticised the public announcement and enforcement of pump prices by individuals or corporate bodies.
Its president, Billy Gillis-Harry, argued that such actions contradict the Petroleum Industry Act of 2021, which mandates that market forces and competitive commercial engagement determine petrol prices in the downstream sector.
He warned that what he described as a “dirty price war” was already inflicting damage on operators across the value chain.
According to PETROAN, many of the sudden price cuts are being implemented below cost, potentially forcing marketers and importers to sell at a loss in a race for market dominance.
Marketers, importers face huge losses
Independent marketers have raised an alarm over massive financial losses linked to the new pricing regime. Industry sources disclosed that marketers could lose as much as N80 billion due to the sudden crash in prices.
Further findings indicated that petrol importers risk losing up to N102.48 billion monthly following Dangote Refinery’s reduction of its gantry price.
At the same time, the refinery itself is projected to lose about N91 billion in one month, underscoring the intensity of the competition reshaping Nigeria’s downstream oil market.
PETROAN warned that prolonged conflict among stakeholders could lead to monopolisation, reduced competition, and pricing instability, ultimately hurting consumers and the wider economy.
A market at a crossroads
While motorists celebrate the immediate relief at the pumps, industry experts caution that sustainable pricing will depend on dialogue, fair competition, and adherence to existing laws.
As the price war intensifies, Nigeria’s downstream sector appears to be at a critical juncture, balancing consumer relief against long-term market stability.
Petrol depot prices drop 14% after Dangote cut
Legit.ng earlier reported that Private petroleum depot owners in Lagos slashed the price of Premium Motor Spirit by about 14 per cent following Dangote Refinery’s latest reduction in gantry prices.
The move intensified competition in Nigeria’s downstream oil market and sparked a rush by marketers to restock at cheaper rates.
Market checks showed PMS now sells for as low as ₦710 per litre at major Lagos depots, down sharply from an average of ₦828 per litre recorded just a week earlier.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.