Nigerian motorists are increasingly avoiding Nigerian National Petroleum Company Limited (NNPCL) retail outlets due to their comparatively higher petrol prices, a recent market survey has revealed.

Observations across major NNPCL filling stations in Abuja show significantly reduced customer traffic as the company maintains its premium motor spirit (PMS) price at N910 per litre while competitors have lowered their rates.

NNPCL outlets along Kubwa Expressway and in Wuse Zones 4 and 6 were notably experiencing low patronage. Musa Abdullahi, an Abuja motorist interviewed, confirmed he now prefers buying fuel from stations offering prices below NNPCL's N910 per litre.

Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained the shift in consumer behavior: "The disparity in prices in filling stations is due to the deregulation of the downstream sector. Filling stations now compete not only because of their brand but also their prices. Before now, NNPCL filling stations had queues because of their prices, but the reverse is the case today."

Price Adjustments Following Dangote's New Template

The market shift follows Dangote Refinery's announcement of a fresh petrol price template last week. In response, several marketers including MRS, AP Ardova, Optima, and Bova have reduced their fuel prices by approximately 15 percent to N895 per litre from the previous N910.

Other retailers such as Salbas and AA Rano in Abuja have also adjusted their prices downward from N910 to N900 per litre as of Tuesday. Similarly, marketers previously selling at N917 per litre have reduced their prices to N910 to remain competitive.

Despite these market adjustments, NNPCL has maintained its N910 per litre price point, contributing to its declining customer base.

This development coincides with NNPCL's Saturday announcement of the temporary shutdown of its Port Harcourt Refinery for maintenance, further complicating the national fuel supply landscape.

The current market dynamics highlight the growing impact of deregulation in Nigeria's downstream petroleum sector, with price competition becoming a key factor in consumer choices at the pump.