As more MRS filling stations in Lagos and Ogun states begin dispensing Premium Motor Spirit (petrol) from the Dangote Petroleum Refinery at N739 per litre, motorists are increasingly boycotting stations that sell fuel at higher prices.
The move has forced other retailers to reduce their pump prices by about N100 per litre, even though this is below their cost of purchase, highlighting the intensity of the price competition in Nigeria’s downstream oil sector.
Last week, the Dangote refinery surprised depot owners and marketers by cutting the gantry price of petrol by N129, from N828 to N699 per litre. During a press briefing, Dangote Group President Aliko Dangote revealed that some marketers intended to maintain high pump prices despite the reduction.
In response, Dangote pledged to enforce the new price regime, with MRS stations selling petrol at N739 per litre starting last Tuesday. “We want to ensure that N970 per litre will not be seen again. For December and January, petrol should not be sold above N740 nationwide. Anyone who can buy 10 trucks can do so at N699,” he said, emphasizing that the company would use all resources to stabilize prices.
The price cut triggered long queues at MRS outlets, particularly the Alapere station in Lagos, as motorists shunned stations charging over N800 per litre. Observations on Sunday showed that other filling stations had started reducing prices to remain competitive, with many now selling below N800 per litre compared to over N900 previously.
While buyers flocked to stations offering cheaper petrol, outlets maintaining higher prices struggled to attract customers. “MRS stations are located in almost every neighbourhood, allowing motorists to bypass more expensive options. This is a major concern for other traders nationwide,” an oil marketer told our correspondent.
As of Sunday, stations like SGR in Ogun sold petrol at N750 per litre, while Petrocam in Mowe charged N785. Some stations, including Heyden and AP, were still above N800, while Mobil stations along the Lagos-Ibadan Expressway sold at N780; Akiavic, N799; Habeeb, N850; Eternal, N880; and Asharami, N890 per litre.
The PUNCH reports that these price cuts, roughly N100 or more from previous levels, have resulted in significant losses for both Dangote and competing marketers. The Nigerian National Petroleum Company Limited (NNPC) also reduced its petrol prices to between N825 and N840, but still struggles to compete with Dangote’s ex-depot price of N699.
According to the Major Energies Marketers Association of Nigeria, importers like NNPC are selling below landing cost due to the Dangote price cuts. Prior to Dangote refinery production, NNPC stations dominated due to subsidies, but queues have since vanished as Nigerians seek cheaper petrol.
Marketers are reportedly losing billions of naira, while Dangote admitted the refinery also incurs losses each time it reduces prices. Estimates show importers could lose as much as N102.48bn monthly, with the refinery projected to lose about N91bn per month due to the price adjustments.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), said any marketers refusing to reduce prices risk losing customers. “Price determines patronage. Wherever fuel is cheaper, that’s where motorists go. This is a price war driven by supply and demand,” he said.
IPMAN has partnered with Dangote refinery, which lowered the minimum purchase from two million litres to 250,000 litres, allowing independent marketers—who operate over 85% of petrol stations—to buy directly. Ukadike expressed confidence that Dangote would compensate marketers for losses sustained from the price reduction.
Dangote refinery confirmed that over 1,000 fuel trucks now collect petrol daily, marking the facility as a hub for distribution. The refinery has also introduced a 10-day bank guarantee system to ensure uninterrupted supply.
“Our goal is to make energy affordable and accessible for every Nigerian. By reducing prices and lowering minimum purchase volumes, we are empowering both large and small marketers to participate and ensure fuel reaches every corner of the country,” Dangote said.
In a recent social media advisory, the Dangote Group warned Nigerians against overcharging, stating, “Petrol is now selling at N739 per litre at MRS stations nationwide. Avoid being overcharged! Get quality petrol at MRS stations. Many other stations are joining soon.”
