Masri could have won by a far bigger margin but wasted a host of opportunities in an exciting game at Port Said stadium.
Playmaker Abdul-Salam Nagah, who has been inspirational for Masri since joining last January, scored the winner in superb fashion after 10 minutes.
ENPPI's surprise 1-0 defeat at promoted side MCDR allowed Masri, who made a fine start to their league campaign, to climb to the summit with 11 points from six games.
Petrojet, ENPPI and Production have 10 points each as heavyweights Ahli and Ismaili, who both have three games in hand, lag behind due to their African commitments.
Masri's convincing displays might give their fans some hope that they can mount a serious challenge for the league, a competition they never won.
But coach Mokhtar Mokhtar is not getting carried away by the team's good run.
"I don't want to put pressure on my players. I just ask them to do their best without focusing too much on the results," he said in a television interview after the match.
"I can't give any promises, no coach can do that."
Movie producer Kamel Abou Ali, the chairman of Masri, is apparently reaping the rewards of the money he spent in the close season to strengthen the team's squad.
Roared on by their enthusiastic crowd, Masri laid siege to Production's area from the very beginning and deservedly went ahead after 10 minutes.
Burkina Faso striker Abdoulaye Cisse found Nagah with a precise pass and the talented playmaker feinted past his challenger before placing a low shot between the keeper's legs and into the net.
Central midfielder Ahmed Magdi, who joined Masri in the summer after failing to establish himself at Cairo giants Zamalek, went close on several occasions with some powerful shots.
He almost doubled Masri's advantage in the 25th minute but Production keeper Nader Saad tipped over his thunderous shot.
Masri maintained their dominance in the second half, with the attacking trident of Cisse, Nagah and Mahmoud Abdul-Hakim causing the visitors all sorts of problems.
Cisse struck the post from close range shortly after the break amid little resistance from Production.
Masri were wasteful but they held on to claim their third win in six games.