Petrol filling stations that used to sell 10,000 litres of petrol daily have recorded a drop in sales to about 1,000 litres and sometimes even as low as 300 litres, per day.
According to the marketers, the sharp rise in the pump price of petrol has significantly altered consumer behaviour and reduced demand for petroleum products.
Pump price of petrol has risen 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.
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 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.
They said motorists are abandoning luxury vehicles for cheaper alternatives and reducing fuel consumption as petrol prices surge across Nigeria.
Marketers say the combined effect of high prices and reduced consumption has significantly impacted turnover across filling stations nationwide.
