Motorists in Lagos are trooping to MRS Oil filling stations following a reduction in the pump price of Premium Motor Spirit (PMS) to ₦739 per litre, a move driven by a sharp cut in ex-depot prices by the Dangote Petroleum Refinery.
The new price, observed at several MRS outlets across Lagos, including Alapere, represents a significant drop from the ₦800–₦970 per litre previously sold by many marketers. However, the reduction has not been uniformly implemented, as some MRS stations in neighbouring Ogun State, particularly along the Mowe–Ibafo stretch of the Lagos-Ibadan Expressway, continue to sell petrol at about ₦875 per litre, citing higher transportation and distribution costs.
The development follows Dangote Refinery’s decision to reduce its gantry price from ₦828 to ₦699 per litre for bulk buyers lifting a minimum of 10 truckloads. President of the Dangote Group, Aliko Dangote, has also vowed to ensure a nationwide pump price benchmark of around ₦740 per litre, warning marketers against profiteering.
“Any marketer that can lift up to 10 truckloads will get PMS at ₦699 per litre,” Dangote said, adding that pump prices nearing ₦970 per litre were unjustifiable under the new cost structure.
The price reduction has sparked intense activity at the Dangote Refinery loading gantry in Lekki, with long queues of trucks and independent marketers from across the country scrambling to load products.
However, the emerging price competition has drawn criticism from industry stakeholders. National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, described the situation as a “dirty price war,” warning that it could undermine the Petroleum Industry Act (PIA) 2021, which promotes deregulation and market-based pricing.
Industry estimates suggest independent marketers could incur losses of up to ₦80 billion, while petrol importers may face monthly losses of about ₦102 billion. Dangote Refinery is also said to be absorbing roughly ₦91 billion monthly to sustain the lower prices.
Despite concerns, analysts believe the development could bring temporary relief to consumers, especially during the festive season, and help stabilise fuel prices if supply remains steady. Other retail partners of Dangote Refinery are expected to adjust their pump prices in the coming days, potentially reshaping competition in Nigeria’s downstream petroleum market.