Fuel Price: Nigerians Dump NNPCL, Other Filling Stations

Motorists in Abuja have reportedly reduced patronage of Nigerian National Petroleum Company Limited (NNPCL) filling stations and other outlets selling petrol at higher prices following recent pump price cuts by some marketers.

Filling station attendants disclosed on Monday that customer traffic had dropped sharply at outlets where petrol prices remained above those of competing stations.

An attendant at an NNPCL station in Abuja said motorists were avoiding the outlet because of the difference in pump prices. According to the attendant, only a small number of customers bought petrol at the station during the day, with many complaining about the high price.

The development followed price reductions by MRS, AA Rano, Sharon and other filling stations across Abuja and parts of the Federal Capital Territory.

MRS reduced its petrol price by ₦50, bringing the pump price down from ₦1,260 to ₦1,210 per litre in Abuja and surrounding areas. AA Rano, Sharon and some other retailers also cut their prices by about ₦25 per litre.

The new prices were introduced on Monday along the Kubwa Expressway and in other parts of the FCT.

The latest reductions followed Dangote Refinery’s decision to lower the price of petrol supplied to the market to ₦1,165 per litre.

While several retailers adjusted their pump prices, NNPCL stations and some other outlets continued to sell petrol at between ₦1,299 and ₦1,310 per litre.

The higher prices were reported at NNPCL outlets in areas including Gwarinpa and Wuse Zones 4 and 6, as well as other locations around Abuja.

Attendants at Shema and Emedab filling stations also reported weaker patronage, attributing the decline to the price gap between their outlets and stations that had already reduced their prices.

Meanwhile, trucks believed to be supplying petrol from Dangote Refinery were seen at some retail outlets in Abuja.

However, the spokesperson of the Independent Petroleum Marketers Association of Nigeria, Chinedu, suggested that NNPCL and some other marketers might not yet have received or stocked products supplied by the refinery at the reduced price.

The price cuts have also extended to petroleum depots, with some depot operators reportedly reducing their prices to about ₦1,168 per litre.

The differing pump prices have renewed concerns about competition and pricing practices in Nigeria’s downstream petroleum sector.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has already begun discussions with industry stakeholders over concerns surrounding anti-competitive pricing practices in the petroleum market.