By Favour Pius
Oil marketers have raised concerns over declining petrol demand across the country, warning that rising pump prices are eroding sales volumes and squeezing margins in Nigeria’s downstream sector.
Industry operators said the sustained increase in the price of Premium Motor Spirit (PMS), commonly known as petrol, has significantly altered consumer behaviour, with many motorists cutting down on fuel consumption amid worsening economic conditions.
The marketers, under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN), noted that the sharp rise in fuel prices has led to reduced patronage at filling stations, affecting daily sales and overall business sustainability.
According to them, many consumers are now buying smaller quantities of petrol or resorting to alternative transport arrangements to cope with the high cost of fuel.
A major marketer who spoke on the condition of anonymity said the situation has created a difficult operating environment for operators already grappling with high logistics costs and volatile supply conditions.
“Sales have dropped significantly because people can no longer afford to buy fuel the way they used to. The higher the price, the lower the volume,” he said.
Industry analysts say the decline in demand reflects broader economic pressures, including rising inflation, high transportation costs and weak consumer purchasing power.
They noted that while deregulation of the downstream sector has led to more market-driven pricing, it has also exposed consumers and businesses to global oil price fluctuations and exchange rate volatility.
The development comes amid ongoing adjustments in the petroleum sector following reforms that removed fuel subsidies and liberalised pricing, allowing market forces to determine pump prices.
Marketers also expressed concerns over the impact of fluctuating prices on inventory management, noting that sudden price changes could lead to losses on existing stock.
They called for improved supply stability, better foreign exchange access and policy consistency to support operators and ensure sustainability within the sector.
The Major Oil Marketers Association of Nigeria (MOMAN) also emphasised the need for a more stable operating environment, warning that prolonged decline in demand could affect investment and expansion plans in the downstream segment.
Analysts further warned that if the trend persists, it could have wider implications for the economy, including reduced mobility, slower commercial activities and additional pressure on small businesses that depend heavily on fuel for daily operations.
While acknowledging that pricing reforms are necessary for long-term sector sustainability, stakeholders insist that targeted measures are needed to cushion the impact on consumers and businesses.
For now, operators say they are adjusting strategies to cope with the realities of a high-price environment, even as uncertainty continues to shape demand patterns in Nigeria’s fuel market.
