The reduction in prices of premium motor spirit (PMS) or petrol, which began on Monday, appeared to have kicked in a market disruption, with several independent marketers seeing low patronage.

On Monday, petrol prices crashed for the first time post deregulation era following the reduction in ex depot price of the product announced by the Dangote Refinery from N970 to N899 per litre from its 650,000 barrels per day refinery located in Lagos. 

The Nigerian National Petroleum Company (NNPC) Limited, also announced a price slash on its petrol ex-depot price from N1, 020 to N899 per litre.

While President of Dangote Industries Limited, Aliko Dangote, brokered a pact with MRS Oil and Gas to offer petrol at N935 per litre at all MRS Oil retail outlets across the country, NNPCL on its part implement a region-based pricing of the product, leading to a price cut across all its retail outlets. 

For instance, in Lagos, Ogun and Abuja, the NNPCL now sells the product at N925, N950 and N960 per litre respectively.

Although some independent and major oil marketers have tried to follow suit, as of yesterday, the majority of them are yet to embrace the price cut.  

While this has led to very low patronage at outlets with higher prices, NNPCL, MRS, Bovas filling stations have seen a surge in patronage.