The Nigerian downstream petroleum sector is witnessing a fierce price war, plunging independent marketers into a sales crisis. This follows the nationwide rollout of Premium Motor Spirit (PMS) from Dangote Petroleum Refinery at a sharply reduced pump price of N739 per litre.
Market Upheaval as MRS Stations Lead Price Cut
Investigations across major cities, particularly Lagos, reveal a stark divide in consumer behaviour. MRS filling stations, the primary retail partner for Dangote Refinery, have fully implemented the new N739 price. As of Tuesday, December 23, 2025, outlets in areas like Ikeja, Alapere, and Abule Egba reported heavy traffic and long queues.
In sharp contrast, stations operated by other major and independent marketers, still selling petrol at prices above N825 per litre, are experiencing alarming inactivity. Along key corridors such as Ikorodu Road and the Apapa to Mile axis, attendants were seen waiting for customers as patronage shifted decisively to the cheaper MRS outlets, exacerbating traffic congestion around them.
Marketers Sound Alarm Over Financial Ruin
The sudden price adjustment has left many fuel retailers grappling with significant financial exposure. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), warned that frequent, unannounced price changes are crippling operators.
He highlighted that marketers are now stuck with existing inventory purchased at much higher costs, making it impossible to compete without incurring heavy losses. The move, according to industry voices, shows little regard for the thin margins on which retail operators survive, threatening their viability.
Dangote's Patriotic Push and Supply Guarantee
In a formal statement, Dangote Refinery defended the price reduction to N739 per litre, calling it a major milestone in stabilizing Nigeria's fuel market and offering relief to households and businesses. The company stated the price is effective across over 2,000 MRS stations nationwide and commended marketers who have complied.
The refinery's intervention is notably altering traditional festive season dynamics, which are usually marked by scarcity and price hikes. Backed by a guaranteed daily supply of 50 million litres, the move is enhancing energy security, conserving foreign exchange, and supporting the Naira.
Dangote Refinery also issued a stern warning against attempts to create artificial scarcity in response to the price cut and urged regulatory authorities to be vigilant. It encouraged Nigerians to report any MRS station selling above N739 via a dedicated hotline, ensuring the benefits of locally refined petrol reach the public undistorted.
The shift is profound, with reports indicating a dramatic surge in evacuations from the Lekki refinery, exceeding 2,000 truckloads daily, as marketers abandon private depots for Dangote's competitive pricing and terms.
