As more MRS filling stations in Lagos and Ogun states began selling Premium Motor Spirit (petrol) produced by the Dangote petroleum refinery at N739 per litre from Tuesday, December 16, other stations have been compelled to cut their prices by about N100 per litre.
This reduction, well below their purchase cost, highlights the intensity of the ongoing price war in Nigeria’s downstream oil sector.
Dangote refinery shocked depot owners and marketers when it slashed the gantry price of petrol by N129, from N828 to N699 per litre.
The president of the Dangote Group, Aliko Dangote, said he had information that some marketers planned to keep pump prices high despite the reduction in the gantry price.
Consequently, Dangote vowed to enforce the new price regime, with MRS selling petrol at N739 from last Tuesday.
Dangote said, “I was told that the marketers have met with (some officials) and were told to make sure that the price is maintained high.
“But this price we are going to introduce, we are going to start with MRS stations, most likely on Tuesday (last week) in Lagos; that N970 per litre, you won’t see it again.
“We have also asked members of IPMAN to come now.
“We have asked anybody who can buy 10 trucks to come and buy 10 trucks at N699.
“We are going to use whatever resources we have to make sure that we crash the price down.
“For this December and January, we don’t want people to sell petrol for more than N740 nationwide.
“Those who want to keep the price high to sabotage the government, we will fight as much as we can to make sure that these prices are down.
“If you have money to come and buy, you can pick up petrol at N699.”
MRS filling stations in Lagos dropped the price of petrol on Tuesday, triggering long queues of vehicles at the outlets as motorists rushed to buy the commodity.
The MRS filling station in Alapere, Lagos, recorded a large turnout of buyers, many of whom boycotted other outlets selling petrol above N800 per litre.
MRS filling stations in Lagos reduced the price of petrol on Tuesday, triggering long queues of vehicles at the outlets as motorists rushed to buy the commodity.
By Sunday, December 21, it was observed that other filling stations had begun reducing prices to remain competitive.
From over N900 last week, many retail outlets now sell petrol below N800 per litre as buyers patronize stations offering lower prices.
While MRS and other stations with cheaper fuel saw high customer turnout, outlets charging higher prices struggled to attract customers.
Many filling stations have adjusted their pump prices.
For instance, SGR filling station in Ogun sold petrol at N750 per litre, while Petrocam in Mowe sold at N785 per litre.
These stations struggled to compete with the N739 price at MRS opposite the RCCG Camp Ground.
Before the price cuts, petrol at these stations was close to N900.
Heyden, a partner of Dangote, still sells at N875 per litre, while AP charges N800.
Mobil stations along the Lagos-Ibadan Expressway sell at N780; Akiavic, N799; Habeeb, N850; Eternal, N880; and Asharami, N890 per litre.
The reduction represents a significant drop of about N100 or more compared to previous prices.
However, the price cuts have resulted in heavy losses for both Dangote and other marketers competing in the market.
Amid intense competition, the Nigerian National Petroleum Company Limited (NNPCL) also reduced petrol prices from N875 to between N825 and N840, depending on location.
At a landing cost of about N828 per litre, importers such as NNPC struggle to compete with Dangote’s ex-depot price of N699 per litre and pump price of N739 per litre, often selling below cost.
Since the Dangote refinery began petrol production a year ago, the sector has been fully deregulated, eliminating long queues at NNPC stations caused by price differences.
Many NNPC stations in Lagos now struggle to attract customers who prefer lower petrol prices.
Marketers have reported losses in the billions of naira, while Dangote acknowledged that the refinery is also losing money.
Estimates suggest petrol importers could lose up to N102.48 billion monthly due to the Dangote refinery’s reduction in gantry prices, with the refinery itself projected to lose around N91 billion per month.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) stated that marketers will lose over N80 billion due to the price cut but that consumers naturally gravitate toward stations selling cheaper fuel.
IPMAN has partnered with Dangote to help evacuate petroleum products efficiently, and Dangote has reduced the minimum purchase volume from two million litres to 250,000 litres to accommodate smaller operators.
The Dangote refinery now records over 1,000 trucks loading petrol daily, demonstrating strong market trust.
Aliko Dangote emphasized that the goal is to make energy affordable and accessible for all Nigerians, empower both large and small marketers, and strengthen distribution networks to improve fuel availability nationwide.
Dangote Group reminded Nigerians to avoid being overcharged by other stations, stating that petrol now sells at N739 per litre at MRS stations nationwide and encouraging consumers to patronize these outlets.
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