MRS, AA Rano slash petrol prices as depot competition deepens
By Aboki Forex —
Major filling stations, including MRS and AA Rano, have cut petrol pump prices, offering relief to Nigerian motorists. The reductions follow a fresh wave of price cuts at private depots, with Dangote Refinery's pricing strategy shaping the market.
New pump prices in Abuja
A market survey on Saturday showed MRS filling stations in Abuja reduced the retail price of Premium Motor Spirit (PMS) to N1,265 per litre, down from N1,305. That is a N40 per litre cut. 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. These cuts reverse part of the increases witnessed over the past two weeks when fuel prices climbed amid volatility in the international oil market.
Depot prices move closer to Dangote
The retail reductions 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.
Global oil prices move higher
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.
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.
What it means for motorists
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. Earlier market checks showed Hong Petroleum and Soroman offering the lowest depot price at N1,255 per litre, making them the cheapest source of petrol among surveyed depots. That price is N20 lower than the highest depot rates of N1,275 per litre charged by Aiteo, NIPCO and Pinnacle.