Price War: Nigerians Dump NNPCL Petrol for Dangote as Fuel Competition Heats Up
Abuja – A growing number of Nigerians are shifting their loyalty from the Nigerian National Petroleum Company Limited (NNPCL) retail outlets to Dangote Refinery’s petrol, sold exclusively through MRS filling stations, as a price war and claims of superior fuel quality reshape the downstream oil sector.
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DAILY POST’s investigation across the Federal Capital Territory (FCT) revealed a noticeable decline in patronage at NNPCL retail outlets, with motorists flocking to MRS stations. Long queues, once a common sight at NNPCL stations, have now migrated to MRS outlets, where petrol is sold at N945 per litre—N20 cheaper than NNPCL’s N965 per litre.
The shift in consumer preference follows a viral video alleging that NNPCL’s petrol burns faster than Dangote’s, a claim NNPCL has dismissed as “baseless and unfounded.” The state-owned oil giant has even threatened legal action against individuals or entities spreading such claims. Meanwhile, the Petroleum Products Retail Outlet Owners Association (PETROAN) has thrown its weight behind NNPCL, affirming the quality of its products.
Motorists Speak: Why the Switch?
Interviews with motorists in Abuja revealed a mix of price sensitivity and perceived quality differences driving the exodus from NNPCL to MRS.
Ali Mohammed, a taxi driver, said, “I’ve switched to MRS because their fuel lasts longer and is cheaper. When I buy 20 litres at MRS, it goes further than the same amount from NNPCL.”
Kunle Abdulrahman, another resident, echoed similar sentiments, stating, “NNPCL’s petrol dries up faster. At MRS, the fuel lasts longer, and the price is more favorable.”
Oluwatobi Esther, a Kubwa resident, admitted she was influenced by word-of-mouth. “A friend told me about MRS fuel, and since I started using it, I’ve noticed a difference. It serves me better,” she said.
MRS Confirms Surge in Patronage
Musa Aliyu, manager of an MRS filling station along Kubwa Expressway, confirmed the increased patronage. “Our queues have been unprecedented lately. I believe it’s due to the cheaper price and the quality of our fuel,” he said.
However, an anonymous fuel attendant at an NNPCL station along the same expressway attributed the low patronage solely to pricing. “If NNPCL reduces its price to N935 today, you’ll see long queues here again. It’s not about quality; it’s about the price,” he insisted.
IPMAN Weighs In: Price Trumps Quality
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), attributed the trend to the deregulation of the downstream sector. “Motorists are more concerned about the amount they spend on fuel than its quality. MRS is selling cheaper, so naturally, they’re attracting more customers,” he explained.
Ukadike emphasized that both Dangote and NNPCL petrol meet standard quality specifications. “The competition is healthy, and it’s a direct result of deregulation. Marketers are using different strategies, including pricing, to gain market share,” he added.
NNPCL’s Silence
Efforts to get NNPCL’s side of the story were unsuccessful, as calls and messages to its spokesperson, Olufemi Soneye, went unanswered at the time of filing this report.
Broader Implications
The price disparity extends beyond NNPCL and MRS, with other filling stations in Abuja selling petrol between N970 and N1,000 per litre. This price variation underscores the competitive landscape in Nigeria’s deregulated downstream sector, where private players like Dangote Refinery are challenging the dominance of state-owned NNPCL.
While the price war benefits consumers in the short term, questions remain about the long-term sustainability of such competition. Analysts warn that if NNPCL continues to lose market share, it could face significant revenue losses, potentially impacting its ability to fund critical infrastructure projects in the oil sector.
The ongoing shift from NNPCL to Dangote petrol highlights the growing influence of private players in Nigeria’s oil market. While price remains the primary driver, perceptions of quality and consumer trust are also playing a role. As the competition intensifies, stakeholders must ensure that quality standards are maintained and that the market remains fair and transparent.
For now, motorists are enjoying the benefits of choice and lower prices, but the long-term impact of this price war on Nigeria’s oil sector remains to be seen.
Reference
Price War: Nigerians Dump NNPCL Petrol for Dangote as Fuel Competition Heats Up