MRS N1,057: Marketers Begin Price War, Filling Stations Adjust Pumps Nationwide
- Fuel prices in Nigeria have surged past N1,000 per litre amid fierce competition among marketers
- NNPC adjusts pump prices twice within four days, reflecting instability in the downstream petroleum market
- Experts warn petrol could reach N1,500 per litre without urgent restoration of local refining capabilities
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
A fierce price battle has erupted among fuel marketers across Nigeria, pushing the pump price of petrol beyond N1,000 per litre in several locations as operators scramble for market share.
The competition intensified over the weekend as major and independent filling stations adjusted pump prices in response to rising global crude costs triggered by escalating tensions in the Middle East.
Source: Getty Images
Market checks show that some filling stations are now selling petrol above N1,050 per litre, while independent marketers in some locations are dispensing fuel at about N1,100 per litre.
Industry stakeholders warn that the situation could worsen if Nigeria fails to quickly revive its local refineries.
Cheapest and costliest petrol prices
The price competition has created noticeable differences in pump prices across filling stations.
Among major marketers, MRS filling stations currently sell petrol at about N1,057 per litre, placing them among the highest priced outlets. Other major stations such as Mobil and TotalEnergies are dispensing fuel at around N1,050 per litre.
However, Ardova Plc (AP) has emerged among the cheapest major outlets with pump prices around N1,030 per litre.
For independent marketers, petrol prices remain significantly higher, with many stations selling at N1,100 per litre or more, depending on location and supply costs.
The aggressive pricing strategies reflect a growing battle among marketers to retain customers in an increasingly volatile market.
NNPC adjusts pump prices twice in four days
Amid the intense competition, Nigerian National Petroleum Company Limited (NNPC Ltd.) has also adjusted its retail pump prices twice within four days.
The state-owned oil company increased the price of petrol at its outlets from N960 to N967 per litre over the weekend, representing a N7 increase.
This adjustment followed an earlier price jump from N875 to N960 per litre, highlighting the rapid shifts occurring in the downstream petroleum market.
Motorists across major cities, including Lagos and Abuja, say the frequent changes are creating uncertainty and placing additional pressure on household budgets.
Dangote Refinery triggers market reaction
The recent price adjustments were largely influenced by changes in the ex-depot price set by Dangote Petroleum Refinery, which supplies a significant share of petrol to marketers.
Last week, the refinery raised its gantry price by N100 per litre, increasing the rate from N774 to N874 due to rising crude oil and freight costs.
Shortly after, major filling stations in Abuja and Lagos adjusted their pump prices to between N930 and N960 per litre, up from earlier levels of around N830 to N875.
But the pressure did not stop there. Within five days, the refinery again raised its ex-depot price to N955 per litre, representing a sharp N221 increase compared to earlier pricing.
The refinery said the adjustments were driven by disruptions in the global oil market caused by geopolitical tensions in the Middle East, which have reduced refining output and tightened supply worldwide.
Despite the increase, the company said it absorbed part of the cost surge to reduce the impact on Nigerian consumers.
Deregulation is driving price changes
According to a report by Daily Sun, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the fluctuations in petrol prices are a natural outcome of Nigeria’s fully deregulated downstream petroleum sector.
According to the agency, pump prices are now determined by supply and demand rather than government intervention.
Officials explained that deregulation is intended to promote competition, improve efficiency and attract investment into the petroleum sector.
As a result, different marketers are free to set their own prices depending on operational costs and market conditions.
Industry warns petrol could hit N1,500
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that petrol prices could climb as high as N1,500 per litre if global disruptions persist.
PETROAN President Billy Gillis-Harry said the ongoing conflict involving Israel, the United States, and Iran is pushing global petroleum prices to dangerous levels.
He explained that attacks threatening the Strait of Hormuz, a critical shipping route responsible for about 30% of global crude oil transportation, could further tighten supply.
According to him, diesel prices have already surged dramatically, rising from about N950 per litre before the crisis to nearly N1,400 per litre.
Call to revive local refineries
Industry experts insist that Nigeria must urgently restore production at its state-owned refineries to reduce exposure to international price shocks.
Local refining, they say, would allow the country to process its abundant crude oil domestically and stabilise petrol prices.
Without such intervention, analysts warn that the current price war and global supply pressures could continue to push fuel prices higher, deepening inflation and increasing the cost of transportation and goods across the country.
Source: Getty Images
NNPC raises petrol price again, MRS, AP, others join
Legit.ng earlier reported that these are tough times for Nigerians as filling stations across the country increase petrol price for the second time in just four days.
A market survey on Saturday, March 7 showed that Premium Motor Spirit (PMS), commonly known as petrol, was selling above N1,000 per litre at several retail outlets across the Lagos mainland and island, prompting motorists to rush to stations offering relatively lower prices.
Stations operated by MRS Oil Nigeria Plc were selling petrol at about N1,030 per litre, while Nigerian National Petroleum Company Limited retail stations had pump prices around N1,050 per litre up from previous rate of N932 in Lagos.
Source: Legit.ng
