The Gers’ Old Firm rivals now trail Ally McCoist’s side by 15 points and today’s victory heaps extra pressure on them ahead of a tough trip to Fir Park.
But it wasn’t a vintage display from the home side despite a double from Nikica Jelavic with only a late own goal ensuring the two goal margin.
McCoist was already short of Steven Naismith, Jamie Ness and Lee McCulloch before kick-off, so the news that Kyle Lafferty had been added to that list was a blow.
It meant a further reshape for the Rangers manager and there were real signs of that in the first period.
His side lacked the fluency to regular pressurise a defence that was posted missing for the only goal of the half.
McKay, epitomising the fluid nature of the midfield shape, popped up on the right flank and delivered a fantastic deep cross for Jelavic.
The No.9 created plenty of space for himself and despite being just about the only Rangers player in the opposition box he planted the header well beyond Dusan Pernis.
That might have been the spark the home side needed, but instead there was a further drop in tempo and McCoist’s agitation on the touchline was evident.
The Light Blues might have been behind already having allowed Johnny Russell and Jon Daly in behind in the fifth minute.
A mix up between Lee Wallace and Carlos Bocanegra allowed Russell space down the right flank.
His delivery was good but Daly slipped as he shot and sent his effort well over the top.
It was just before the 20 minute mark that Rangers took the lead but they were almost instantly pegged back.
A dangerous cross from Dixon on the left was met by Dorin Goian who turned the ball toward his own goal forcing Allan McGregor in to a fine save.
The game had barely found a flow but it wasn’t helped by the loss of another player to injury when Wallace was forced off.
Gregg Wylde replaced the full back leading to a further reshaping of the side with Papac dropping back to left back.
And the Bosnian played a key part in defending the home side’s lead when he did enough to put off Daly at the back post when he looked to capitalise on another Dixon delivery.
There wasn’t much change at the start of the second half, save for another reshuffle from McCoist in terms of his side’s shape.
Wylde was moved to the right flank and it was from there that he won the penalty that gave the home side some breathing space.
Some neat work from McKay allowed him to feed Jelavic and when the striker looped the ball in to the path of Wylde he took a touch and moved in to the area.
Dixon then launched himself at the young winger and missed the ball before flattening the Scotland under-21 cap.
There was no hesitation from the referee who instantly pointed to the spot, from where Jelavic made no mistake to notch his 11th of the campaign.
However within ten minutes that degree of comfort was removed when Garry Kenneth floated a long delivery to the back post where Bocanegra was outjumped by Daly who nodded beyond McGregor.
The comfort was restored however, with the gap between the goals standing again at ten minutes.
It was great work on the right from Steven Whittaker that made the opening and while many wanted to credit Jelavic with his hat-trick, it was Kenneth who turned the cross beyond his keeper.
In injury time Gregg Wylde was sent off and Kyle Bartley was yellow carded for their reactions to a challenge from Willo Flood.