Lagos, Nigeria – In an unexpected move that promises relief to millions of Nigerian motorists, MRS Oil Nigeria Plc has announced a significant reduction in the price of Premium Motor Spirit (PMS), popularly known as petrol. The price of petrol at all MRS stations in Lagos has now been slashed to N925 per litre, following a recent drop in ex-depot prices from its partner, Dangote Refinery.
This price adjustment, made public on February 9, 2025, marks the second reduction in a matter of days, as Nigeria continues to grapple with inflation and rising costs of living. MRS Oil has made it clear that its new regional price structure will offer varying rates based on location. Petrol will now retail at N935 per litre in the South West, N945 per litre in the North, and N955 per litre in the Eastern regions of Nigeria.
For Nigerians weary of the financial strain imposed by rising fuel prices, the announcement has been met with a collective sigh of relief.
“At MRS, we understand the difficult economic situation Nigerians face daily. This price reduction is our way of showing solidarity with the people,” said a spokesperson for the company. “While prices may differ regionally, the standard remains consistent – we’re committed to offering quality fuel that runs your engine without compromise.”
The reduction follows a similar price cut by Dangote Refinery on February 1, when it announced a reduction in its ex-depot price from N950 to N890 per litre. The move by Dangote Refinery was primarily driven by favorable developments in the global energy market, with international crude oil prices experiencing a notable dip in recent weeks.
The Impact of Global Energy Shifts
This new pricing structure, however, isn’t just a result of local market forces. Global oil prices have witnessed a decline in recent months, providing a much-needed break for the Nigerian fuel market. For the first time in several months, both MRS and Dangote Refinery have capitalized on this shift to ease the burden on Nigerian consumers.
Dangote Petroleum Refinery, the giant facility owned by billionaire Aliko Dangote, had previously raised the ex-depot price of petrol in January, when crude oil prices surged globally. But with recent favorable shifts in the global energy market, the refinery reversed the previous hike, opting for a price reduction instead.
Anthony Chiejina, the Group Chief Branding and Communications Officer at Dangote Refinery, explained the rationale behind the price cut, emphasizing the positive effects it would have on Nigeria’s economy.
“The reduction from N950 to N890 will bring tangible benefits to Nigerians, reducing transportation costs, lowering the prices of goods and services, and ultimately easing the burden on families,” Chiejina said in a statement released earlier this month. “This move aligns with our commitment to the broader economic goals of President Bola Tinubu’s administration, which seeks to make Nigeria a hub for refined petroleum products.”
Indeed, the ripple effects of these price cuts could be far-reaching, as fuel prices are closely tied to the cost of living and the price of goods and services. With transportation costs significantly lower, Nigerians can expect reductions in the prices of essential items, from food to household goods.
The Push for Self-Sufficiency in Petroleum Production
Both MRS Oil and Dangote Refinery have also expressed strong support for the federal government’s initiatives to make Nigeria self-sufficient in petroleum production. This push is aimed at reducing the country’s reliance on imported refined fuel, which has contributed to the perennial fuel price volatility. By refining more locally, Nigeria hopes to stabilize the market and become a key player in global oil exports.
“These price reductions are part of a broader strategy to support Nigeria’s economic revival,” the MRS Oil spokesperson continued. “We are playing our part in ensuring that Nigerians have access to affordable, high-quality fuel, while supporting the country’s long-term energy security goals.”
While this is promising news for Nigerian motorists, the government’s ongoing efforts to overhaul the energy sector have faced challenges. Fuel scarcity and the occasional hike in fuel prices have long plagued the country, and the latest cuts have been welcomed as a hopeful sign that the country’s fuel supply chain may be on a more stable footing.
Market Reactions: A Step Toward Stability
Nigerians across the country have reacted positively to the reduction in petrol prices, especially in light of the recent cost-of-living pressures. The new prices from MRS and Dangote Refinery are seen as a step toward stabilizing the market and providing some respite to the average Nigerian consumer.
“I’m really relieved by this news. It’s a small but important win for ordinary Nigerians like myself,” said Chijioke Okafor, a resident of Lagos. “Fuel prices have been one of the main contributors to rising costs for everything—transport, food, you name it. I just hope this trend continues.”
In the northern parts of Nigeria, where the cost of fuel has been a significant factor in driving up transport fares, the N945 per litre price is expected to alleviate some of the financial burden on consumers. However, there are concerns about how well the price cuts will be implemented at the grassroots level.
“While this is a welcome move, I hope the price reduction trickles down to the filling stations,” said Amina Bello, a businesswoman in Kano. “Sometimes we hear about price cuts, but the stations don’t always follow through with the new rates.”
The Road Ahead: Is This the End of Price Hikes?
As Nigeria’s fuel market continues to evolve, the key question remains: will these price reductions hold? Experts agree that the country’s energy sector remains vulnerable to global price fluctuations, and while the current reductions provide temporary relief, it’s uncertain whether they will result in long-term stability.
In the short term, the cuts by MRS and Dangote Refinery appear to offer a glimmer of hope to Nigerians struggling with the impact of inflation. However, analysts caution that with ongoing shifts in global oil prices, it’s difficult to predict what the future holds for fuel prices in the country.
