Fuel Price Drops in Lagos, Abuja as Marketers Adjust Rates
Petrol prices yesterday crashed for the first time post-deregulation era. The crash can be attributed to a reduction in ex-depot price of the product announced by the Dangote Refinery from N970 to N899.50 per litre from its 650,000 barrels per day refinery located in Lagos. The Nigerian National Petroleum Company (NNPC) Limited, also announced a price slash on its petrol ex-depot price from N1,020 to N899 per litre.
But determined to ensure the price cut trickles down to motorists, the President of Dangote Industries Limited, Aliko Dangote, revealed a partnership between its refinery and MRS Oil and Gas to offer petrol at N935 per litre at retail outlets.
Following the partnership, MRS Oil Nigeria Plc, yesterday began the implementation of the new price across all its retail outlets in the country. To ensure compliance, the MRS said it has set up a digital platform and monitoring team to ensure full compliance, appealing to Nigerians to report any of its outlets that fail to adhere to the new price structure.
“Petrol is now being sold at N935 at MRS Filling Stations nationwide. If you find any station not following this price, please report it,” the company stated in a statement.
Checks in Lagos metropolis yesterday also indicated that across the retail outlets of the NNPCL, prices dropped to N925 from its previous price of N1, 025, representing a N100 per litre slash. In Ibadan, Oyo state, NNPCL petrol sold at N985 per litre yesterday from a previous N1, 015The firm also cut down its price from N1,040 in Abuja to N965 per liter.
Similarly, Bovas Oil reduced its petrol price to N985 per litre to motorists from a previous N1,025 it sold as at Sunday.
Notably, while other oil marketers are implementing a structured price regime depending on the region, MRS is implementing a uniform price of N935 per litre across its outlets nationwide.
In Lagos, commuters were seen queuing up at MRS filling stations to purchase petrol. A commuter at the MRS station at Alapere on the Lagos Ibadan Express way, who identified herself as Mrs. Ibukun Phillips, said: “The price reduction is the best gift of the season.”
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A commercial bus driver, Adio Ajibade, described the price reduction as a great relief, especially during the festive season.
“The reduction is a great relief. It will reduce transportation costs and benefit Nigerians. God will continue to bless Alhaji Aliko Dangote,” he said.
A public affairs analyst and university lecturer, Dr. Tunde Akanni, said the collaboration between Dangote Petroleum Refinery and MRS Oil represents a significant step towards improving the affordability, quality, and sustainability of petroleum products in Nigeria.
According to Dr. Akanni, “this move will not only help ease the financial burden on Nigerians but also promote a more environmentally conscious approach to fuel consumption, benefitting both the economy and public health in the long term.”
Stakeholders have also hailed the price reduction. While they expressed satisfaction at the development, saying it is one of the numerous benefits of deregulation in the downstream sector, they nonetheless cautioned on its downside.
The National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Harry, hailed the development as a positive step toward easing the financial burden on citizens. According to him, the price cut is a much-needed relief for motorists and Nigerians, especially during the festive season.
“The reduction in PMS price by NNPCL is a demonstration of the company’s commitment to making petroleum products more affordable for Nigerians. We commend NNPCL for responding to our call for affordable PMS prices,” Harry said.
He explained that lower fuel costs will reduce transportation expenses, enabling motorists to save on fuel and increase their disposable income. Besides, he said the reduction is expected to boost economic activity by lowering production costs, which will drive demand for goods and services.
The PETROAN boss also commended Dangote Refinery for its efforts in the sector, acknowledging the refinery’s role in fostering a competitive environment that benefits consumers and the economy.
He however cautioned on compromising product quality as a result of competitive pricing and urged the industry regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure strict adherence to quality assurance standards across the industry.
