Widening Petrol Price Gaps Across Nigeria as Import Surge Creates Market Disparities
Analysts and industry stakeholders have expressed growing concerns over the significant variations in petrol pump prices across Nigeria, linking this emerging trend to rising fuel imports and uneven supply dynamics within the downstream petroleum market. This development highlights the ongoing challenges in Nigeria's transition to a fully deregulated energy sector, despite the provisions outlined in the Petroleum Industry Act.
Survey Reveals Stark Price Variations Across Major Cities
According to recent market surveys, retail outlets across Nigeria are displaying remarkably different pricing structures for Premium Motor Spirit. MRS stations, which benefit from pricing linked to Dangote Refinery, currently dispense petrol at N739 per litre in numerous locations nationwide. This competitive pricing has resulted in noticeably longer queues at MRS filling stations as consumers prioritize cost savings despite extended waiting periods.
In Lagos, petrol sells for approximately N739 per litre at MRS stations, N740 at AP outlets, and reaches up to N770 per litre at Mobil stations. The Ota area of Ogun State shows AP stations selling PMS at N735 per litre while Nigerian National Petroleum Company Limited outlets maintain a price of N770 per litre. Abuja presents even starker contrasts with NNPCL stations maintaining a pump price of N815 per litre while MRS continues at N739 per litre, and independent marketers in the capital city sell petrol between N825 and N840 per litre.
Port Harcourt reveals similar disparities where MRS stations sell at N739 per litre, NNPCL outlets at N795 per litre, and other private stations in the city offer PMS at prices ranging from N893 to N930 per litre. In Kano, motorists queue steadily at MRS stations selling at N739 per litre while nearby stations such as Aliko and A.Y. Mai Kifi sell petrol at approximately N830 per litre.
Consumer Behavior and Market Responses
The price differences have created distinct consumer behaviors across Nigeria. Many motorists willingly endure longer queues at cheaper stations to benefit from reduced fuel costs, while others continue patronizing higher-priced outlets due to confidence in fuel quality and pump accuracy. Commercial drivers have particularly welcomed the price reductions, with some expressing surprise that petrol prices have fallen below N900 per litre following the subsidy removal in 2023.
Industry observers note that depot prices have reportedly dropped to about N702 per litre, placing pressure on marketers' profit margins while keeping independent stations priced above major marketers. This situation occurs amid increasing competition from local refineries entering the market.
Regulatory Challenges and Industry Perspectives
Economists and petroleum industry experts warn that unclear pricing frameworks and rising imports could continue disrupting supply chains and investment confidence in Nigeria's energy sector. Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, stated that regulatory agencies have not done enough to encourage healthy competition and protect local refining investments. He cautioned that excessive importation of refined products might discourage both current local refinery operators and future investors.
The national secretary of the Petroleum Dealers Association of Nigeria, Ibrahim Shehu Yahaya, explained that petrol prices are primarily based on marketers' landing costs and benchmarked against Dangote's pricing, which currently represents the market's lowest point. He emphasized that the Petroleum Industry Act promotes open market competition and suggested that more refineries benefiting from the naira-for-crude arrangement could help stabilize prices by reducing exposure to foreign exchange volatility.
Refinery Initiatives and Market Stabilization Efforts
Dangote Refinery has implemented several measures to support market stability, including reducing minimum purchase volumes to 250,000 litres at a gantry price of N699 per litre in December 2025 to enable more independent marketers to participate. The refinery management has reiterated its commitment to stable supply and has established a dedicated hotline for Nigerians to report any MRS stations selling petrol above the approved N739 per litre pump price.
The Crude Oil Refiners Association of Nigeria noted that current price differences reflect competition for market share, with Dangote Refinery producing approximately 50 million litres daily while national consumption slightly exceeds that figure, making imports necessary. The association's spokesperson, Eche Idoko, observed that import licences issued in late 2025 appeared to exceed supply gaps, a situation requiring clarification from the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria expressed willingness to collaborate with Dangote Refinery provided price stability and supply consistency are maintained. As Nigeria continues navigating its deregulated petroleum market, these price variations underscore the complex interplay between local refining capacity, import dynamics, regulatory frameworks, and consumer behavior in shaping the nation's energy landscape.
