Motorists in Abuja are increasingly avoiding filling stations selling petrol at higher prices as MRS, AA Rano, Sharon and other retailers reduce their pump prices.
The shift in patronage follows recent reductions in petrol prices by several filling station operators, while NNPCL retail outlets and some other stations have maintained prices above ₦1,299 per litre.
An attendant at an NNPCL filling station in Abuja told newsmen that patronage dropped sharply on Monday as motorists opted for cheaper alternatives
The development highlights growing competition in Nigeria’s downstream petroleum market as retailers respond to price cuts by the Dangote Refinery
MRS reduced its petrol price by ₦50 per litre, bringing the price down from ₦1,260 to ₦1,210 per litre in Abuja and surrounding areas
The latest reduction marks the company’s second price cut in less than two weeks
Other retailers, including AA Rano and Sharon, also reduced their pump prices by about ₦25 per litre
The new prices were introduced along the Kubwa Expressway and in other parts of the Federal Capital Territory on Monday
The price cuts followed the Dangote Refinery’s decision to reduce its petrol price to ₦1,165 per litre
The refinery’s lower price has increased pressure on other players in the downstream market as filling stations seek to remain competitive
Depot owners have also reduced their petrol prices, with some selling the product at about ₦1,168 per litre
The different price points have created a wider gap between filling stations, giving motorists more incentive to compare prices before buying fuel
Motorists Avoid Higher-Priced Stations
While several retailers have reduced their prices, NNPCL stations in parts of Abuja were still selling petrol between ₦1,299 and ₦1,310 per litre as of Monday
The higher prices were reported at NNPCL outlets in Gwarinpa, Wuse Zones 4 and 6 and other parts of the Federal Capital Territory
The difference has already affected sales at some stations
An NNPCL filling station attendant said motorists were complaining about the price and had largely stopped buying from the outlet
The attendant said sales had fallen sharply, with only a small number of motorists purchasing petrol during the day
Other attendants at Shema and Emedab filling stations also reported low patronage because of the higher prices
Dangote Trucks Seen at Abuja Stations
Despite the different pump prices, Dangote Refinery trucks were reportedly seen at several retail outlets in Abuja
However, the Independent Petroleum Marketers Association of Nigeria said NNPCL and other marketers may not have received or stocked products supplied by the Dangote Refinery
This could partly explain why some filling stations have yet to reflect the latest reduction in their pump prices
The development has raised fresh questions about how quickly changes in depot and refinery prices are passed on to consumers
NMDPRA Moves Against Anti-Competitive Pricing
The price differences come as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) consults with industry stakeholders over concerns about anti-competitive pricing in the petroleum sector
The consultations could become important as competition increases among refiners, depots and retail outlets
For motorists, however, the immediate concern remains the price they pay at the pump
A significant difference between nearby stations can quickly influence where consumers choose to buy petrol
What the Price Competition Means for Consumers
The latest developments suggest that competition is becoming a stronger factor in Nigeria’s petrol market
Lower depot and refinery prices can give retailers room to reduce pump prices, but the final price paid by motorists can still vary from one filling station to another
For consumers, this means checking prices before buying could become increasingly important
For retailers, maintaining higher prices when competitors offer cheaper petrol could result in falling sales and loss of customers
The pressure may therefore continue to push more filling stations to review their prices as they compete for motorists
The Bigger Picture
Nigeria’s downstream oil market is undergoing major changes as domestic refining expands and fuel retailers respond to new pricing dynamics
The Dangote Refinery’s price reductions, combined with lower depot prices, have created room for competition among petroleum marketers
However, the pace at which lower costs reach consumers remains a key issue
If more retailers secure cheaper supplies and pass the savings to motorists, petrol prices could become more competitive across different parts of the country
For now, the message from motorists appears clear: where petrol is cheaper, customers are willing to follow.
