- MRS and AA Rano cut petrol prices, providing relief for Nigerian motorists amidst global oil price pressures
- Dangote Refinery’s pricing strategy influences the market, with depots adjusting rates closer to its ex-depot price
- Rising crude oil prices challenge the market, but competition may lead to sustained lower petrol costs for consumers
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerian motorists are getting a fresh dose of relief as major filling stations, including Dangote Refinery-backed MRS and AA Rano, have reduced petrol pump prices following a fresh wave of price cuts at private depots.
The latest adjustments come despite renewed pressure on global crude oil prices, highlighting the growing influence of Dangote Refinery on Nigeria’s downstream petroleum market.
Credit: Bloomberg/Contributor
Source: Getty Images
MRS, AA Rano reduce pump prices
A market survey conducted on Saturday showed that MRS filling stations in Abuja cut the retail price of Premium Motor Spirit (PMS) to N1,265 per litre, down from N1,305, representing a N40 per litre reduction.
The new price was observed at MRS outlets in Kubwa and along the Lugbe Expressway in the Federal Capital Territory.
AA Rano also adjusted its pump price, lowering petrol from N1,330 to N1,300 per litre, a reduction of N30 per litre.
The price cuts reverse part of the increases witnessed over the past two weeks when fuel prices climbed amid volatility in the international oil market.
Depots match Dangote Refinery’s price
The reductions at retail outlets followed fresh price cuts by depot operators, many of whom have moved their rates closer to Dangote Refinery’s ex-depot price.
Dangote Refinery recently announced the free distribution of petrol across at least five states, including the Federal Capital Territory, while maintaining a gantry price of N1,215 per litre.
Industry data from PetroleumPriceNG showed that major depots, including Pinnacle, Shema and Gulf Treasure, now sell petrol at N1,216 per litre, just N1 above Dangote’s rate. Emadeb was quoted at N1,217 per litre.
Other depots, including Pinnacle, NIPCO, Sigmund and Emadeb, were also reported to be dispensing petrol between N1,217 and N1,222 per litre, reflecting increasing competition in the downstream market.
The narrowing gap between depot prices and Dangote Refinery’s rate is expected to sustain pressure on marketers to lower pump prices in the coming days.
Rising crude prices pose a fresh challenge
The latest reductions come at a time when global crude oil prices are moving in the opposite direction.
International benchmark Brent crude climbed above $90 per barrel on Friday, while West Texas Intermediate (WTI) traded close to $85 per barrel, driven by renewed geopolitical tensions in the Middle East.
Oil prices surged after reports of fresh military exchanges involving Iran and the United States raised concerns over possible disruptions to global energy supplies, despite improving tanker movements through the Strait of Hormuz.
Credit: Novatis
Source: UGC
Although higher crude prices typically increase the cost of importing refined petroleum products, the intensified competition triggered by Dangote Refinery’s aggressive pricing strategy is helping to cushion the impact on Nigerian consumers, at least for now.
For motorists, the latest reductions signal renewed hope that the ongoing price competition among refiners, depots and marketers could translate into more affordable fuel in the weeks ahead.
5 marketers sell fuel at the cheapest rate
Legit.ng earlier reported that Petrol marketers across Nigeria have continued to adjust depot prices, with some offering cheaper products to attract buyers amid intense competition in the downstream sector.
A market survey showed that Hong Petroleum and Soroman currently offer the lowest depot price at N1,255 per litre, making them the cheapest source of petrol among the surveyed depots.
The price is N20 lower than the highest depot rates of N1,275 per litre charged by Aiteo, NIPCO, and Pinnacle.
Source: Legit.ng
