Nigerian petrol stations in Abuja have begun lowering pump prices in a bid to draw more customers, highlighting how retail competition is intensifying even as global oil markets remain unsettled by the ongoing Middle East crisis.
Key takeaways
- Fuel retailers in Abuja cut petrol prices on Thursday, with NIPCO, Eterna and Mobil reducing rates to N1,350 per litre.
- Before the adjustment, those stations were selling between N1,365 and N1,370 per litre, narrowing the spread for consumers.
- The price cuts amounted to about N15 to N20 per litre for the affected outlets.
- Chinedu Ukadike, a spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the change.
- Global crude benchmarks fell on Thursday, with Brent slipping to about $99 and West Texas Intermediate dropping to around $93 per barrel.
Stations cut pump prices to win customers
A petrol price market check on Thursday showed that several outlets in Abuja moved to cheaper rates to improve patronage. NIPCO, Eterna and Mobil stations were reported to have reduced their petrol pricing to N1,350 per litre, down from a prior range of N1,365 to N1,370 per litre.
That translates into retail cuts of roughly N15 to N20 per litre across the outlets that lowered prices during the day. The adjustment was framed as a competitive step rather than a broad retreat from pricing discipline.
IPMAN links the move to competition amid volatile crude
IPMAN spokesperson Chinedu Ukadike confirmed that marketers made the price change. He said the strategy is meant to attract more consumers by offering a tighter price, particularly when demand is not strong enough to sustain higher margins.
In his remarks, Ukadike described the trade-off involved in cutting prices to maintain sales volume, noting that businesses sometimes accept reduced profit in the short term to keep transactions moving and generate returns on investment.
The move comes as domestic petrol price swings continue, with the report pointing to persistent uncertainty in global markets driven by the Middle East crisis, now extending for more than two months beyond the initial phase of escalation.
Oil benchmarks also eased on Thursday. Brent and West Texas Intermediate both fell by close to 3%, trading at about $99 per barrel for Brent and around $93 per barrel for West Texas Intermediate.
