Cheap Fuel, But at What Price? The Hidden Truth Behind the N739 Petrol Price



By Nwokolo Joshua Adeyemi (240912157)

Professor Emeritus of Petroleum Economics and energy expert Wumi Iledare said that Dangote backed petrol at MRS filling stations selling at N739 per liter and the long attendance queues are not evidence of market efficiency but of distortions in Nigeria’s oil downstream sector.


He disclosed this in a statement on Tuesday, reacting to the long queues at MRS filling stations in Lagos. Iledare explained that with fewer than “five MRS stations in the entire Lagos metropolis, isolated price discounts simply manufacture scarcity and long queues.”

He noted that once the time value of money is considered, including hours lost in queues, foregone productivity, vehicle wear and stress, the so-called price advantage quickly evaporates. Prof. Iledare added that discounted refinery prices only make economic sense if matched by scale in distribution; otherwise, they amount to unsustainable signals that transfer hidden costs to consumers rather than deliver genuine welfare gains.


What we are witnessing in Lagos, over two thousand vehicles queuing at a single

MRS outlet selling Dangote supplied PMS at N734 per liter, is not evidence of market

efficiency but of downstream distortion.”

He urged that the Petroleum Authority of Nigeria needs to be vigilant for any anticompetitive behavior in the retail end of the downstream market as well.


There’s reports that other filling stations, including the Nigerian National Petroleum

Company Limited, TonyJosh, Mobil, NIPCO, Ranoil, Empire energy and others, dispensed petrol at between N815 and N839 per liter in Lagos. 

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