Professor Emeritus of Petroleum Economics, Wumi Iledare, has criticized the long queues at MRS filling stations in Abuja, stating that they are not evidence of market efficiency but rather distortions in Nigeria’s oil downstream sector. According to Iledare, the queues are a result of Dangote’s backed petrol being sold at a discounted price of N739 per liter, which is not a sustainable solution.
Iledare explained that with only a few MRS stations in the entire Abuja metropolis, the isolated price discounts create artificial scarcity and long queues. He noted that when considering the time value of money, including hours lost in queues, foregone productivity, vehicle wear, and stress, the perceived price advantage disappears. The professor emphasized that discounted refinery prices only make economic sense if matched by scale in distribution, otherwise, they transfer hidden costs to consumers rather than delivering genuine welfare gains.
The situation in Abuja, where over 2
