“Fuel Price War: MRS, Dangote Refinery Lead the Charge with Pump Price Cuts”
The Nigerian National Petroleum Company Limited (NNPCL) is considering a reduction in the price of Premium Motor Spirit (PMS), following an announcement by MRS filling station in collaboration with Dangote Refinery, which revealed a decrease in fuel pump prices on Monday.
the National President of the Petroleum Products Retail Outlet Owners Association, Billy Gillis-Harry, and Chinedu Ukadike, the Spokesperson for the Independent Petroleum Marketers Association of Nigeria, confirmed this development. MRS filling station made the announcement on Monday, marking the first fuel price reduction of 2025.
MRS revealed that its pump prices had dropped to N925 per litre in Lagos, with regional prices at N933 for the South West, N945 for the North, and N955 for the South-East. This decrease is from the previous price of around N970 per litre.
The price drop follows Dangote Refinery’s announcement on February 1, 2025, of a reduction in its ex-depot price to N870 from N970 per litre. Experts, including Gillis-Harry and Ukadike, expect NNPCL to make a similar move in the coming days, driven by competition in the downstream sector.
Gillis-Harry stated that NNPCL “has no choice but to reduce petrol retail prices” to remain competitive. Ukadike added that the ongoing price war between Dangote Refinery and NNPCL would likely force the latter to follow suit and announce a price drop.
However, despite the price reductions, the effects on transportation and food prices have been minimal. Gillis-Harry explained that the weak purchasing power of Nigerians is preventing the price drop from impacting the broader economy. “The cost of transportation has not reduced, even with the lower retail fuel prices. This highlights the weak purchasing power of the average Nigerian,” he said.
Ukadike, on the other hand, expressed optimism that the full effects of the price reduction would eventually be felt over time, particularly in transportation and goods/services.
Both experts raised concerns about the frequent adjustments to petrol prices. Gillis-Harry cautioned that constant price fluctuations could harm fuel security. He explained that marketers, who purchased fuel at higher prices, face difficulties selling it when prices are reduced, leading to potential financial losses.
Last December, Dangote Refinery had slashed its ex-depot price from N899.50 to N970 per litre, while NNPCL also followed with a price drop. This competition between NNPCL and Dangote Refinery is expected to continue driving down fuel prices as 2025 progresses.
