Key players in Nigeria's oil and gas industry have expressed growing frustration over widening petrol price disparities across the country.
Some retail outlets sell fuel significantly above the N739 per litre benchmark set by the Dangote Refinery-designated stations, blaming it on the surging petrol imports into the country.
According to analysts, the price advantage largely explains the longer queues seen at MRS filling stations nationwide compared with other outlets. For many Nigerians, the choice is simple: cheaper fuel, even if it means waiting longer.
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Checks by LEADERSHIP on Monday revealed notable price variations across states.
In Lagos, AP filling stations sold petrol at N740 per litre, Mobil at N770 per litre, while MRS dispensed fuel at N739 per litre. In Ota, Ogun State, AP filling stations sold petrol at N735 per litre, while NNPC stations sold it at N770 per litre.
The NNPC and MRS filling stations in Abuja maintained benchmark PMS prices of N815 and N739 per litre respectively on Monday, while independent marketers sold between N825 and N840 per litre.
NNPC outlets adjusted pump prices to N815 per litre earlier in January, with displays confirmed at locations in Lugbe, Wuse and Kubwa.
MRS stations stuck to the Dangote Refinery-backed rate of N739 per litre nationwide, including Abuja, urging customers to report overpricing.
Independent outlets showed slight variations, with Sunlight at N825, Matrix at N840 and Optima Energy at N835 per litre.
Depot wholesale costs fell to around N702 per litre, pressuring margins but keeping independents above major marketers amid competitive supply from local refineries.
In Port Harcourt metropolis and environs, MRS Filling Stations sell at N739.00 per litre of Premium Motor Spirit (PMS).
The Nigerian National Petroleum Company Limited (NNPCL) outlets sell at the rate of N795.00 per litre.
Other privately owned retail stations in Port Harcourt, the state capital, sell between N893.00 and N930.00 per litre.
Speaking to LEADERSHIP, commercial vehicle drivers expressed happiness over the continuous reduction in the pump price of PMS in the country.
Udom Bassey, a commercial bus driver, said he never believed that one day the price of PMS would come down to less than N900.00 after it skyrocketed in 2023 following the removal of fuel subsidy.
Also speaking with LEADERSHIP, another commercial taxi driver, Obinna Uno, said that with the reduction in the price of PMS, prices of foodstuffs and other commodities would reduce in the market.
In Kano, the contrast between price and consumer preference played out quietly but clearly. At an MRS filling station selling petrol at N739 per litre, a steady line of motorists formed--modest in length, but consistent--reflecting how even small price differences can influence behaviour amid rising living costs.
Nearby and in other parts of the state, Aliko and A.Y. Mai Kifi filling stations sold petrol at N830 per litre. Yet patronage at these outlets did not completely dry up.
At Aliko filling station, a fuel attendant, Mudassir Mohammed, told LEADERSHIP that customers continued to return because of confidence in product quality and pump accuracy.
"We still have good patronage because our litre is correct. People trust us, and they come," he said.
For motorists like Ibrahim Ado, trust outweighs price. He said he prefers stations such as Aliko, believing their pumps are more reliable. Long queues at cheaper stations, he added, are often not worth the time. For him, certainty matters more than savings.
Analysts said Nigeria is still struggling to align with free-market dynamics in the downstream petroleum industry, even though the Petroleum Industry Act (PIA) provides clear guidance to enable free-market operations.
Key stakeholders and oil industry analysts have therefore warned of ongoing supply chain disruptions and uncertainty in the pricing of Premium Motor Spirit (PMS), also known as petrol, in Nigeria's domestic market.
They expressed disappointment and dissatisfaction over the current petrol price hikes, which clearly do not reflect market realities. According to them, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is responsible for providing clarity on supply and demand data and for providing adequate information and a framework that shows the direction the government is driving.
Speaking with LEADERSHIP on the issue, an economist and chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said regulatory agencies have probably failed to properly implement a system that fosters competitiveness in the downstream sector.
Yusuf wondered why it appears to be a challenge for the government to clearly articulate and implement a system that incentivises investors to lift and expand capacity, create jobs and support economic development.
He faulted what he termed an unclear framework that does not address the economic consequences of killing local industries by promoting and encouraging the importation of refined products into the country.
In his opinion, allowing the importation of refined petroleum products to compete with in-country refined products should be seen as a disincentive to local investors.
"We can only allow such practices when in-country capacity is exhausted. But when it has not been adequately proven that local capacity has become unsustainable, then import substitution can be considered.
"I think if this continues, those who have invested in refinery infrastructure will not be able to sustain their businesses or expand, and in addition to that, it will discourage future investment," he added.
Ibrahim Shehu Yahaya, national secretary of the Petroleum Dealers Association of Nigeria (PEDAN), said that petrol prices are not set indiscriminately but are based on the marketer's landing cost. He explained pricing is based on, or benchmarked against, Dangote's prices, which appear to be the lowest.
He said the PIA is strict about its capitalist nature, hence the removal of the NNPC monopoly, which the Dangote monopoly cannot replace.
According to him, the market should be open to the best and cheapest product, as previous protection did not benefit the economy.
He agreed that the country would see a better market regime when more refineries benefit from the naira-crude arrangement. Though crude prices are benchmarked to international prices, they may be buying in naira, which should safeguard them from dollar volatility, and they have lower costs than foreign refined products.
The Crude Oil Refiners Association of Nigeria (CORAN), on its part, noted that the ongoing price fluctuations of petrol should not be seen as though Nigerians will necessarily benefit afterwards.
CORAN spokesman, Eche Idoko, while speaking to LEADERSHIP, said: "I think the price disparity is mainly a result of the drive for market share by different actors. As the market settles with time, we will see alignments. You must also note that the factors driving prices for local refiners and importers are different, so price caps may not be identical."
He said Dangote currently refines about 50 million litres per day. At the same time, NMDPRA data show that daily consumption slightly exceeds that amount, and that is what the import licences are supposed to cover. Still, the licences issued in the last quarter of 2025 greatly exceeded that amount, which runs contrary to the PIA.
It is a situation the NMDPRA may have to explain and correct, he argued.
Similarly, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry, said the association is ready to partner with Dangote if management maintains price stability.
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He said: "The association is not ready to engage in the importation of products so long as there is assurance of supply stability."
Gillis-Harry said the association is only concerned with the frequency of price shifts by the Dangote refinery and said that if there are assurances that when payment is confirmed, supply will be met, then marketers will support the refinery and reject patronage of importers.
David Bird, Managing Director and Chief Executive Officer of Dangote Refinery, emphasised the facility's advanced design and operational flexibility, which enable sustained high output even during scheduled maintenance.
In addition to Mr Bird's assertion, the Group Head of Corporate Communications for the Dangote Group, Anthony Chiejina, said Nigeria's growing refining capacity places the country in a strong position amid shifting global geopolitical dynamics that threaten oil supply and prices.
In December 2025, the Dangote Petroleum Refinery announced a major policy shift aimed at widening access to its petrol supply, reducing the minimum purchase volume from 500,000 litres to 250,000 litres at a gantry price of N699 per litre.
The move was designed to enable more independent marketers to buy directly from the refinery. To further ease participation, the company disclosed that both existing and new customers could access a 10-day credit facility--secured by a bank guarantee--when purchasing the smaller volume.
Reinforcing its pricing stance, the refinery urged Nigerians to report any MRS filling stations selling petrol above the approved pump price of N739 per litre, stressing that the price cut marked a critical step in its effort to make fuel more affordable and stabilise the downstream market.
