Independent marketers are exploring the new partnership between MRS and Dangote Refinery to reduce the price of Premium Motor Spirit (PMS) petrol nationwide.
MRS Oil Nigeria Plc, a prominent player in the Nigerian downstream oil industry, has announced the implementation of a new petrol price of ₦935 per litre across all its retail service stations nationwide.
This followed the announcement by the President of Dangote Industries Limited, Aliko Dangote, that the Dangote Petroleum Refinery had partnered with MRS Oil and Gas to offer petrol at ₦935 per litre at retail outlets, following a reduction in the ex-depot price from ₦970 to ₦899.50 per litre.
In response, MRS Oil Nigeria Plc has instructed all its outlets to implement the new price immediately, setting up a digital platform and monitoring team to ensure full compliance.
The company has also urged Nigerians to report any outlets failing to adhere to the new price structure.
“Petrol is now being sold at ₦935 at MRS Filling Stations nationwide. If you find any station not following this price, please report it. Call 08009447853 or email [email protected],” the company stated in a release.
Based on this arrangement, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that starting yesterday, petrol will be sold at ₦935 per litre at retail outlets.
IPMAN National President Maigandi Garima told the News Agency of Nigeria that the new price was necessitated by the reduction in Dangote Refinery’s fuel ex-depot price and uniform arrangement, enabling marketers to sell at ₦935 in their outlets nationwide.
However, LEADERSHIP checks revealed that only MRS filling stations have implemented the change in petrol pump price, with other marketers looking to explore partnerships with MRS to enable them to lower prices as well.
Fuel pump prices may drop below ₦1,000 nationwide as independent marketers explore the recent partnership deal between Dangote Refinery and MRS Oil to secure petroleum products at reduced costs.
Currently, PMS is being sold between ₦1,020 and ₦1,200 per litre. However, MRS Oil recently changed its pump price to ₦935 per litre at its outlets nationwide, the lowest pricing in recent times.
LEADERSHIP reports that to relieve Nigerians, Dangote recently reduced the price of PMS from ₦970 to ₦899.50 at its refinery loading gantry and provided generous credit terms to marketers.
To ensure this price reduction reaches the end consumer, the refinery management signed a partnership with MRS to sell petrol from its retail outlets nationwide at ₦935 per litre. This price has already commenced in Lagos and will be offered nationwide from Monday.
With this deal in place, some independent marketers are ready to load from MRS Oil to benefit from this arrangement, potentially reducing their logistics costs and enabling them to lower their pump price to below ₦1,000 in the meantime.
In his reaction to the offer, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry, said the gesture would provide better opportunities for members to secure petroleum products at reduced costs.
He explained that “most members do not have the capacity to buy as much as one million litres directly from the Dangote facility, but with the MRS deal, we have engaged the marketer so that our members with the capacity to buy only one truck can do so.”
He added that the association has a similar arrangement with the NNPC retail, with the ultimate aim of ensuring the sustainable procurement of products.
Dr Gillis-Harry noted that PETROAN members would adjust to the reduced pump price once they begin receiving supplies from MRS outlets.
Emphasising the eco-friendly nature of its products, MRS Oil urged petrol station owners to join MRS Oil Nigeria Plc in improving Nigeria’s supply chain, ensuring product quality and availability for the benefit of all Nigerians.
Checks by our correspondents yesterday confirmed that the new price had been implemented at all MRS Oil and Gas retail outlets nationwide.
In Lagos, commuters were seen queuing at MRS filling stations to purchase petrol. Many expressed their gratitude to Dangote Petroleum Refinery and MRS Oil and Gas, urging other marketers to support the indigenous refinery rather than import off-spec products into the country.
Ibukun Phillips, a commuter at the MRS station at Alapere on the Lagos-Ibadan Expressway, expressed joy as her husband filled their car.
“I am very happy today. This is a victory for Nigeria,” she said. “The price reduction is the best gift of the season. Beyond just the reduction, we are buying standard, eco-friendly petrol at a lower rate. My husband and I have decided we will only use MRS from now on because we are confident in the quality of the product and in supporting the economy.”
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 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.
Dr Akanni added, “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.”
Meanwhile, IPMAN has said it has not entered into any such arrangements to reduce the pump price of petrol.
Elder Chinedu Okoronkwo, the immediate past National President of the association and currently the BOT Treasurer, told our correspondent that IPMAN had yet to secure such a deal.
He said that although news about price reductions had been rife, the association had not officially received any documentation to that effect. He added that, once this is done, the public would begin to buy products at reduced rates.
When correspondents visited some filling stations between Lagos and Ogun States yesterday, fuel was being sold at ₦1,020 across Mobil Filling Station, Conoil, Nipco, and other filling stations along the Mowe-Ibafo area of Ogun State on the Lagos-Ibadan Expressway. Before the recent price drop, fuel was being sold at ₦1,065 per litre.
At MRS filling stations in the Ogudu area of Lagos State, petrol was sold at ₦935 per litre, while NNPC outlets priced theirs slightly higher at ₦1,050. Other independent filling stations around the area were retailing the product at ₦1,071 per litre. This disparity in pricing has left consumers grappling with tough choices at the pump.
Motorists have directed pleas at NNPC, urging it to lead by example by reducing prices.
A motorist, Mr Bedemi Ojo, said: “NNPC should take the initiative to make fuel affordable. If their prices are high, it gives others the excuse to charge even more.”
This sentiment is echoed across the country, as many see NNPC as holding the key to market stabilisation.
However, the pump price reduction has not yet affected transportation fares.
In his statement, Aliko Dangote called on other oil marketers, such as NNPC Retail, to work with his company to ensure that Nigerians enjoy high-quality petrol at discounted prices.
“The Dangote Refinery is for the benefit of Nigeria and Nigerians. We will, therefore, continue to work with various value chain players to deliver high-quality petrol at cheaper prices. Our aim is for all Nigerians to have ready access to high-quality petroleum products that are good for their vehicles, good for their health, and good for their pockets,” he said.
Recently, Aliko Dangote commended President Bola Ahmed Tinubu for the positive impact of the naira-for-crude swap deal on the Nigerian economy, which has led to a reduction in petroleum product prices nationwide.
In September, the Federal Executive Council (FEC), under the president’s leadership, approved the sale of crude to local refineries in Naira and the corresponding purchase of petroleum products in Naira. This move, which commenced on 1 October, reduced pressure on the dollar and ensured the stability of the local currency.
Dangote thanked Nigerians for their unwavering support and the government for creating an enabling environment for the domestic refining industry.