A significant shift has occurred in Nigeria's fuel retail landscape, with MRS Oil Nigeria emerging as the new benchmark for affordable petrol, displacing the long-standing price leadership of the state-owned Nigerian National Petroleum Company (NNPC).
The New Price Leader in the Downstream Market
For many years, the NNPC set the pricing standard for Premium Motor Spirit (PMS) across the nation. However, data from Sunday, January 11, 2026, reveals a new reality. Petrol at MRS filling stations now sells for N739 per litre nationwide. This price undercuts the NNPC retail price, which was recorded at N785 per litre in Lagos and N815 in Abuja on the same date. In some other states, NNPC's price was as high as N950 per litre.
The change is largely attributed to the strategic influence of the Dangote Petroleum Refinery. MRS Oil, which is controlled by Sayyu Dantata, the half-brother of Aliko Dangote, has leveraged a partnership with the refinery to secure cheaper fuel. This alliance has effectively challenged NNPC's dominance in the downstream sector.
Dangote Refinery's Expanding Influence and Competitive Pricing
While MRS outlets are selling Dangote-refined petrol at the agreed N739 benchmark, other retail partners of the refinery are also offering competitive rates, though slightly higher. For instance, Legit.ng observed that Ardova filling stations were selling at N740 per litre, while First Royal sold at N750 per litre. Other stations noted for selling below NNPC's rates include Heyden, Optima energy, and Technoil.
The potential for even lower prices exists. The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has indicated that Dangote Refinery's gantry price is currently around N699 per litre. He explained that once marketers benefit from reduced or eliminated logistics costs, particularly through direct supply from the refinery, they could pass savings to consumers. This scenario could make pump prices below the current N739 per litre benchmark a reality, especially in urban areas with intense competition.
Market Stability and Future Projections
This pricing shift comes amidst clarifications from Dangote Refinery regarding its operational capacity. The refinery denied reports of a production shutdown, stating it supplied a massive 43.3 million litres of petrol to the market in a single day on Saturday, January 3. This volume is said to cover more than half of Nigeria's estimated daily fuel demand, providing significant market stability.
The emergence of MRS as the cheapest seller, backed by Dangote's refinery output, signals a transformative period for Nigeria's fuel market. NNPC Retail Limited, which operates about 900 stations across Nigeria and Togo, now faces robust competition that is directly benefiting consumers through lower prices at the pump.
