In a major shift for Nigerias energy sector MRS Oil Nigeria Plc has officially commenced the sale of Premium Motor Spirit PMS at N739 per litre at various retail outlets starting with its stations in Lagos This significant reduction follows a strategic price cut by the Dangote Petroleum Refinery which slashed its gantry price from N828 to N699 per litre just days ago .
While motorists are celebrating the relief at the pumps during the festive December 2025 season the move has triggered a cold war within the downstream sector The Petroleum Products Retail Outlet Owners Association of Nigeria PETROAN has kicked against the development raising concerns over market stability and regulatory compliance .
The Catalyst Dangote Refinerys Price Intervention
The price drop was set in motion by Alhaji Aliko Dangote President of the Dangote Group who vowed to crash fuel prices across Nigeria to ease the burden on citizens During a press briefing at the Lekki refinery Dangote revealed that the refinery is committed to ensuring that petrol does not exceed N740 per litre nationwide during December and January .
Also Read : OAP Dotun Warns Peller and Jarviss Relationship is a Ticking Time Bomb Built on Validation
According to Dangote the N739 price point at MRS stations is a direct result of the refinerys lower ex depot costs He questioned why some marketers continued to sell above N900 noting that transportation costs within Lagos are roughly N15 per litre By enforcing a lower retail price through partners like MRS the refinery aims to challenge what it describes as sabotage by interests who prefer higher price regimes .
MRS Leads the Way
As the primary offtaker for the Dangote Refinery MRS filling stations became the first to implement the new pricing template Reports from Alapere and other parts of Lagos show long queues as motorists abandon stations selling for N900 plus to take advantage of the N739 rate .
MRS has indicated that these regional prices will be monitored closely The company encouraged consumers to report any of its stations selling above the recommended price signaling a transparent shift toward competitive retail pricing .
PETROAN Kicks Why Marketers are Concerned
Not everyone is applauding the price crash PETROAN led by its National President Dr Billy Gillis Harry has expressed strong disapproval of what it calls price pronouncements by private entities The associations concerns are centered on three main pillars .
1 Violation of the Petroleum Industry Act PIA PETROAN argues that under Section 205 1 of the Petroleum Industry Act 2021 petrol prices should be determined by unrestricted free market conditions rather than announcements by individual corporate bodies They contend that any attempt to fix or enforce a price even a lower one undermines the deregulated nature of the sector .
2 Sustainability and Dirty Price Wars The association described the current situation as a dirty price war that is causing collateral damage PETROAN claims that the aggressive price cuts are designed to frustrate importers and are often executed below actual costs They warn that such predatory pricing might be unsustainable and could lead to .
- Artificial scarcity if smaller marketers are driven out of business .
- A decline in investor confidence due to market volatility .
- Potential supply chain disruptions once the price war concludes .
3 Regulatory Tensions The dispute has also heightened tensions between the Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA PETROAN has backed the regulator urging President Bola Tinubu to intervene and ensure that the rule of law prevails over market dominance strategies .
Impact on Consumers and the Economy
For the average Nigerian the reduction to N739 per litre is a welcome reprieve from the high inflation and transportation costs that have plagued 2025 Energy analysts suggest that if other major marketers like NNPCL TotalEnergies and Ardova follow suit it could lead to a broader cooling of inflationary pressures across the economy .
However the price war highlights the fragility of Nigerias transition to a fully deregulated market While competition is intended to drive prices down the friction between a massive local producer Dangote traditional importers and retail owners suggests that the road to price stability remains rocky .
Whats Next
Aliko Dangote has stated that his refinery will use its resources to ensure the N739 N740 price point is maintained throughout the holiday season Conversely PETROAN is calling for a dialogue facilitated by the Federal Government to prevent a total breakdown of the downstream value chain .
As more trucks load at the N699 gantry price the coming weeks will reveal whether N739 becomes the new national standard or if the kicks from PETROAN will lead to a regulatory adjustment in the pricing strategy .
Disclaimer
The news information presented here is based on available reports and reliable sources Readers should cross check updates from official news outlets and verified government or regulatory announcements .