Why MRS Petrol Now Sells for ₦739 Nationwide — Dangote Refinery Explains

Dangote Refinery has rejected claims that it is giving MRS Oil Nigeria Plc special treatment on petrol pricing, insisting that every marketer lifting product from its facility pays the same rate. 

The refinery says the ₦739 per litre being seen at many MRS stations nationwide is not a “refinery-issued” pump price, but a downstream outcome shaped by competition, logistics, and each retailer’s operating model.

The clarification follows growing public debate over why MRS outlets have been able to post ₦739 per litre, often lower than what motorists see at many competing filling stations.

“No preferential pricing at the refinery gate”

At the centre of the refinery’s response is a simple claim: uniform pricing for all customers at the point of sale (ex-gate). The refinery’s Managing Director, David Bird, said the company does not create different price bands for different marketers.

According to Bird, any truck that loads petrol directly from the Dangote Refinery pays ₦699 per litre ex-gate, regardless of which marketer is lifting the product. In other words, the refinery’s stance is that MRS is not buying petrol cheaper than others from the same source.

Just as importantly, the refinery says it does not set pump prices for filling stations. What consumers pay at the nozzle, it argues, is outside the refinery’s control.

Why the pump price differs from station to station

Dangote Refinery’s core explanation for the ₦739 retail price at MRS and the higher prices elsewhere, is that Nigeria’s downstream market is deregulated and competitive. In a deregulated market, the refinery supplies product, but marketers decide how much to add on top to cover their costs and margins.

Bird’s argument is that the final pump price is influenced by factors such as:

• Transportation and distribution costs (especially for stations far from supply points)
  
• Operational efficiency (how lean a marketer’s logistics and station operations are)
  
• Overheads (power, staffing, maintenance, security, rent/lease costs)
  
• Margin strategy (whether a retailer chooses lower margins to win market share)
  
• Supply chain choices (direct lifting versus layered depot/third-party arrangements)
  

In practical terms, this means two stations can buy the same petrol at the same ex-gate price and still sell at different prices because their cost structures and competitive strategies differ.

Why MRS can price lower

While Dangote Refinery did not attribute MRS’s pricing to any special deal, it pointed to commercial and operational reasons some marketers may be able to sustain lower pump prices.

A marketer that lifts directly from the refinery and runs a tighter distribution network can, in theory, reduce intermediate costs and keep the retail price more competitive. The refinery’s position is that these are business decisions by marketers, not instructions from Dangote.

This framing also aligns with what is now happening across the market: once one large retailer posts a lower price, competitors face pressure to respond, especially in high-traffic urban corridors.

The quality question

Dangote Refinery also urged the public not to reduce the conversation to “cheap versus expensive” alone. 

The refinery’s message is that fuel quality should remain a priority, adding that Nigeria’s downstream sector is under regulatory oversight designed to ensure petrol sold at stations meets the required standards.

Supply outlook: “We’re producing 50 million litres daily”

On supply, the refinery says it is currently producing about 50 million litres of fuel per day, a volume it describes as sufficient to meet Nigeria’s present petrol demand.

However, Bird acknowledged that estimating “true” national demand has become difficult in recent months due to market volatility. He linked this volatility to price adjustments and currency devaluation, which can reduce consumption and disrupt normal demand patterns, what operators sometimes describe as “demand destruction.”

Still, he maintained that the refinery has been delivering the 50 million litres/day level consistently and that when marketers require those volumes, they have been able to lift them.

The bigger picture: a price war is already forming

The refinery’s explanation lands at a time when competition in Nigeria’s petrol market is intensifying. Beyond MRS, other outlets in some locations have reportedly sold PMS below the ₦739 benchmark, particularly in parts of Lagos, Ogun, and other major cities.

That trend signals a market now entering a more aggressive phase: retailers are fighting for volume, and pump prices are becoming a visible tool for winning customers, especially where stations are clustered closely together.

What this means for Nigerians

Dangote Refinery’s message is straightforward: ₦739 at MRS is not proof of a special refinery discount. The refinery says the ex-gate price is the same for everyone, and the differences motorists see are driven by downstream realities, cost, efficiency, and competition.

For consumers, the immediate takeaway is that pump prices may continue to vary by location and brand, and could keep shifting as marketers undercut each other to protect market share. 

The more intense the competition becomes, the more Nigerians may see pockets of lower prices, while high-cost routes and less efficient operators may remain more expensive.