Oil marketers have revealed that most filling stations that used to sell 10,000 litres of petrol daily are now selling about 1,000 litres, sometimes even as low as 300 litres, per day.
This is according to industry operators who say the sharp rise in pump prices has significantly altered consumer behaviour and reduced demand for petroleum products.
They said that many motorists are seriously cutting down on fuel consumption, as most of them are buying just five or four litres of the product.
The development comes amid sustained volatility in the downstream petroleum sector, driven by rising global crude oil prices linked to the Middle East conflict involving the United States of America, Iran and Israel.
The surge in prices has pushed petrol from an average of N839 per litre to over N1,350 per litre, while diesel has risen from N1,340 to above N1,750 per litre in recent weeks.
Marketers say the situation has weakened purchasing power, reduced sales volumes, and forced both consumers and operators to adjust to a new market reality.
What they are saying
Oil marketers say the spike in petrol prices has led to a sharp drop in daily sales volumes and a noticeable shift in consumer behaviour, with many motorists opting for cheaper transport alternatives.
They said motorists are abandoning luxury vehicles for cheaper alternatives and reducing fuel consumption as petrol prices surge across Nigeria.
- “The way the crude oil is going up, there is no magic about that. It is reflective of their production cost, with the crude oil cost. We are not coping again, we are losing it… Most stations that can sell up to 10,000 litres in a day are now selling 1,000 and 2,000, and some 300 litres,” said Chinedu Ukadike, National Publicity Secretary of IPMAN.
- “They are buying 5 litres and 4 litres. And most people, their behavioural attitudes have changed. They are parking their luxurious cars, using economic cars… some are using EVs, tricycles and other means of transportation,” he added.
- “It has led to higher working capital requirements… margins have also become tighter due to price volatility and reduced consumer purchasing power. Additionally, demand has softened slightly,” said oil marketer Alhaji Isa Muhammad.
Marketers say the combined effect of high prices and reduced consumption has significantly impacted turnover across filling stations nationwide.
More Insights
Industry operators say structural challenges in Nigeria’s refining capacity and pricing dynamics have worsened the impact of rising global oil prices on domestic fuel costs.
- Marketers noted that the absence of fully functional government-owned refineries has reduced the ability to moderate prices in the domestic market.
- They argued that if the NNPC refineries were operational, they could provide a benchmark for pricing and introduce some level of market stability.
- According to operators, reliance on market forces under a deregulated regime means global crude oil prices and exchange rates continue to dictate local pump prices.
They added that even with local refining, factors such as efficiency, scale, and transparency would determine the extent of price moderation.
- Ukadike said, ‘’NNPC, which was the government model that normally leads in price change, is now following behind, is even lagging. The NNPC, who was the pioneer of price change, determines price in Nigeria, is no longer around the corner. So, that is the problem. Had it been NNPC is refining if they set their own price, because the market is competitive, the other refineries will not. That is where we find ourselves.’’
We are diversifying
Marketers also disclosed that many operators are diversifying into alternative energy products and improving operational efficiency to stay afloat amid declining petrol demand.
- Muhammad said, ‘’We are adapting by improving operational efficiency and tightening cost controls across the business. We are also optimizing supply chains, reducing wastage, and adjusting pricing strategies to remain competitive while staying afloat.
- ‘’In some cases, we are diversifying into related energy products and services to cushion the impact of declining petrol demand. Strong financial discipline and customer retention strategies have been key to navigating this period.’’
Ukadike said that most producing nations are no longer exporting petroleum products as they are trying to sustain local demand.
He added that if Nigeria could triple its crude oil production and exports, it could become an exporter of refined petroleum products with our refineries working instead of looking to import.
He also said that these petroleum products are available, noting that the situation could have been worse if there had been product scarcity with more pressure on Nigerians. He said that leaves the masses to only battle with the issue of affordability.
What you should know
The surge in petrol prices is part of a broader energy cost increase affecting multiple sectors of the Nigerian economy.
- Nairametrics recently reported that aviation fuel (Jet A1) prices have surged above N2,000 per litre, more than double pre-conflict levels of N950–N1,000.
- Industry experts say jet fuel accounts for over 40% of airline operating costs, meaning higher fuel prices could lead to increased airfares and flight disruptions.
- The ongoing Middle East conflict involving the United States, Iran, and Israel has pushed global crude oil prices above $117 per barrel, driving energy costs higher globally.
The current trend highlights how global oil market shocks are directly reshaping consumer behaviour and business operations in Nigeria’s energy sector, with affordability emerging as a major concern for households and businesses alike.
