Residents of Lagos woke up to a major surprise on Tuesday as the price of Premium Motor Spirit (PMS), commonly known as petrol, took a sudden downward turn at some filling stations. Our correspondent, who monitored the situation across the Lagos and Ogun State metropolis, reports that several MRS filling stations have officially adjusted their pumps to N739 per litre. This development has immediately triggered massive queues as motorists boycotted other outlets still selling the commodity at higher rates.
At the Alapere axis of Lagos, the MRS station became a beehive of activity. Commercial bus drivers, private car owners, and dispatch riders were seen struggling to get into the forecourt. Some motorists told our reporter that they had to drive past several stations selling for as high as N890 per litre just to take advantage of the N739 price. However, the situation was different as one moved further out of the city. Along the Mowe and Ibafo axis of the Lagos-Ibadan Expressway in Ogun State, MRS stations were still dispensing petrol at N875 per litre as of Tuesday evening, suggesting that the price crash is currently being implemented in phases.
This sudden price movement follows a bold declaration by the President of the Dangote Group, Alhaji Aliko Dangote. On Friday, the Dangote Refinery reduced its gantry price—the price at which it sells to distributors—from N828 to N699 per litre. Speaking on Sunday, the billionaire industrialist vowed to enforce a new pump price regime to ensure that the benefits of the refinery reach the common man. Dangote expressed frustration that despite the lower prices at his refinery, some marketers were still keeping pump prices high to “sabotage” the government and maximize profit.
“We are going to use whatever resources we have to make sure that we crash the price down,” Dangote stated. He made it clear that for the months of December and January, he does not expect petrol to be sold for more than N740 per litre nationwide. He challenged independent marketers to come and pick up fuel directly from the refinery at N699 per litre if they can afford to buy at least ten trucks. According to him, the partnership with MRS was the starting point to show Nigerians that the N970 per litre price era is over.
However, this “price war” has not gone down well with other major players in the oil industry. The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has come out swinging against the move. The President of PETROAN, Billy Gillis-Harry, issued a strongly worded statement on Tuesday, condemning what he described as the “announcement of prices by individuals or corporate bodies.” Although he did not mention Dangote by name, his reference was clear. Gillis-Harry argued that the move violates the Petroleum Industry Act (PIA) 2021.
According to the PETROAN boss, Section 205(1) of the PIA clearly states that prices in the downstream sector must be determined by “unrestricted free market conditions” and competitive engagement, not by the pronouncements of a single producer. He described the current situation as a “dirty price war” that is causing “collateral damage.” PETROAN is worried that these aggressive price crashes are being executed “below cost” just to frustrate importers and gain market dominance. The association warned that such a strategy is unsustainable and could lead to a monopoly, which would eventually hurt the Nigerian economy and the consumers in the long run.
The financial stakes are incredibly high. Independent marketers, many of whom still have old stock bought at higher prices, have told source that they stand to lose up to N80 billion because of this sudden price cut. Furthermore, findings show that fuel importers could lose as much as N102.48 billion monthly as they struggle to compete with Dangote’s N699 gantry price. Even the Dangote Refinery itself is not immune, with projections suggesting it could lose about N91 billion in a month due to the price reduction.
As the battle for market control intensifies, the average Nigerian is caught between the joy of cheaper fuel and the fear of a looming supply crisis if marketers refuse to buy. While Dangote insists on crashing the price to help the masses during the festive season, PETROAN is calling for “constructive negotiation” rather than what it calls “price-ambushing strategies.” For now, the long lines at MRS stations in Lagos remain a testament to the fact that in the eyes of the consumer, price is king.
