Nigerian motorists are receiving a fresh reprieve as two major fuel retailers, MRS and AA Rano, have cut their pump prices in Abuja, following a broader reduction in depot prices across the country. This development comes even as global crude oil prices continue to climb, highlighting the competitive pressure Dangote Refinery is exerting on Nigeria's downstream petroleum sector.
A market survey conducted on Saturday revealed that MRS filling stations in Abuja now sell Premium Motor Spirit (PMS) at N1,265 per litre, down from N1,305 — a N40 cut. The new price was observed at MRS outlets in Kubwa and along the Lugbe Expressway in the Federal Capital Territory. Similarly, AA Rano lowered its petrol price from N1,330 to N1,300 per litre, a reduction of N30.
These adjustments partially reverse the price increases seen over the past two weeks, when fuel costs climbed amid volatility in the international oil market. The latest reductions follow a new wave of price cuts by private depot operators, many of whom have set their rates closer to Dangote Refinery's ex-depot price.
Depots match Dangote Refinery rate
Dangote Refinery recently announced the free distribution of petrol across at least five states, including the Federal Capital Territory, while keeping its gantry price at N1,215 per litre. According to industry data from PetroleumPriceNG, major depots such as Pinnacle, Shema, and Gulf Treasure now sell petrol at N1,216 per litre — just one naira above Dangote's rate. Emadeb is quoted at N1,217 per litre.
Other depots, including NIPCO, Sigmund, and Pinnacle, are reportedly dispensing petrol at prices ranging from N1,217 to N1,222 per litre, reflecting intensifying competition in the downstream market. The narrowing gap between depot prices and Dangote Refinery's rate is expected to keep pressure on marketers to reduce pump prices further in the coming days.
Crude oil surge challenges market
The latest price cuts come at a time when global crude prices are moving in the opposite direction. Brent crude, the international benchmark, climbed above $90 per barrel on Friday, while West Texas Intermediate (WTI) traded near $85 per barrel. The surge is driven by renewed geopolitical tensions in the Middle East, following reports of fresh military exchanges involving Iran and the United States, which raised concerns over potential disruptions to global energy supplies — despite improving tanker movements through the Strait of Hormuz.
Typically, higher crude prices increase the cost of importing refined petroleum products. However, intensified competition triggered by Dangote Refinery's aggressive pricing strategy is helping to cushion the impact on Nigerian consumers, at least for now.
For motorists, these reductions signal renewed hope that the ongoing price competition among refiners, depots, and marketers could translate into more affordable fuel in the weeks ahead. Additionally, Legit.ng earlier reported that petrol marketers across Nigeria have continued to adjust depot prices, with some offering cheaper products to attract buyers.
Cheapest depot prices
A market survey showed that Hong Petroleum and Soroman currently offer the lowest depot price at N1,255 per litre, making them the cheapest source of petrol among the surveyed depots. That price is N20 lower than the highest depot rates of N1,275 per litre charged by Aiteo, NIPCO, and Pinnacle.
The widespread adjustments suggest that competition in the downstream sector is not only benefiting Abuja motorists but also having a ripple effect across the country. As producers and marketers vie for market share, consumers may continue to see price relief despite external pressures on the global oil market.
