Nigerians Celebrate as MRS Cuts Petrol Prices Following Dangote Refinery Reduction

Nigerians welcomed a major relief at the pumps on Tuesday as MRS filling stations lowered petrol prices following a significant reduction by Dangote Refinery. 

In parts of Lagos, petrol is now selling for N739 per litre, down from previous rates above N800, sparking excitement among motorists who rushed to stations offering the new price.

The price drop comes after Dangote Refinery slashed its gantry price for petrol from N828 to N699 per litre last Friday. Aliko Dangote, President of the Dangote Group, had promised that this reduction would be reflected at retail outlets, ensuring that Nigerians pay no more than N740 per litre for petrol in December and January. 

He warned that any attempt to maintain high pump prices would be considered sabotage.

At MRS outlets in Alapere, Lagos, long queues of vehicles were seen as drivers tried to take advantage of the lower rates. However, the reduction has not been uniform across all regions. 

For instance, MRS stations along the Lagos-Ibadan Expressway in Ogun State continued selling petrol at about N875 per litre, while many non-MRS stations maintain prices between N850 and N890 per litre.

The move has not gone down well with some industry players. The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) criticized the public announcement and enforcement of pump prices, saying it goes against the Petroleum Industry Act of 2021. 

PETROAN President Billy Gillis-Harry described the situation as a “dirty price war,” warning that many marketers are being forced to sell below cost, which could lead to massive financial losses and market instability.

Industry estimates suggest that independent marketers could lose up to N80 billion, petrol importers up to N102.48 billion, and the refinery itself about N91 billion in a single month due to the sudden price cuts. 

PETROAN cautioned that prolonged conflicts could reduce competition and destabilize the downstream market, ultimately hurting consumers and the economy.

Despite these concerns, consumers are enjoying immediate relief. The price reduction reflects intense competition in Nigeria’s downstream oil sector, following Dangote Refinery’s strategic decision to push pump prices lower. 

Experts note that while the current situation benefits motorists, sustainable pricing will depend on dialogue, fair competition, and adherence to industry regulations.

This development highlights a market at a crossroads, balancing the short-term relief for Nigerians against long-term stability in petrol pricing.