KEY POINTS
- MRS sells petrol at 739 naira per litre.
- Dangote refinery cuts wholesale prices.
- NNPC and rivals respond with reductions.
A petrol price fight is widening across Nigeria, with MRS Oil Nigeria emerging as one of the most aggressive challengers to the market’s old order as cheaper supply from the Dangote refinery reaches forecourts.
MRS, controlled by businessman Sayyu Dantata, has rolled out pump prices of about 739 naira per litre for premium motor spirit at stations in Lagos and several other states. The move has drawn motorists away from competing outlets and triggered fresh price cuts by rivals. The discounts followed Dangote Refinery’s decision to reduce its wholesale gantry price to 699 naira per litre from 828 naira in mid-December, according to Nigerian media reports.
Aliko Dangote said the wholesale cut was intended to flow through to consumers. Speaking during a televised briefing, he said MRS would be the first retail chain to sell at 739 naira per litre and urged other marketers to purchase fuel directly from the refinery. He also criticised stations that kept prices elevated despite the reduction.
Price cuts ripple across stations
Dantata’s role in the distribution push has drawn attention because of his family and business links to the refinery. MRS lists him as chairman and says he previously worked at Dangote Group before building the retail and logistics network that now serves as a key offtaker for refinery supply. Business publications have also described Dantata as Dangote’s half brother.
The price cuts have forced a response from NNPC Limited, which has long dominated petrol supply. The Punch reported that NNPC outlets selling around 875 naira per litre when MRS launched its 739 naira price later cut prices to between 825 naira and 845 naira in some locations. Prices then slipped below 800 naira at stations along the Lagos-Ibadan Expressway. NNPC has paired the reductions with public statements that competition should work in consumers’ favour.
Smaller marketers feel the strain
The sharper discounts are tightening margins for smaller retailers and import-dependent marketers. Industry groups say many operators are holding higher-cost inventory bought before the latest cuts, while bank interest continues to accrue on fuel that remains unsold. Some marketers say matching 739 naira would mean selling at a loss.
Nigeria’s fuel market has been shifting since the government began dismantling petrol subsidies, exposing prices more directly to exchange rates, freight costs and refinery output. Dangote’s Lekki-based plant, Africa’s largest, is expected to reduce imports over time. It has also introduced a new source of pricing pressure that regulators and competitors are watching closely as domestic supply starts to reshape the market.
