PRODUCT QUALITY PERCEPTION, PRICING DYNAMICS, BRAND TRUST AND SALES VOLUME OF FILLING STATIONS IN ADAMAWA STATE POST-FUEL SUBSIDY REMOVAL

Abstract

The removal of petrol subsidy in Nigeria in May 2023 caused pump prices to rise from ₦198 to over ₦550 per litre nationally and above ₦1,100 in parts of Adamawa State, exacerbating poverty in a region where over 75% of residents live below the poverty line. This study examined how post-subsidy product quality perception, pricing dynamics, and brand trust influence sales volume at major and independent filling stations in Adamawa State. Using a cross-sectional survey design, structured Likert-scale questionnaires were administered to 380 respondents comprising private motorists, commercial drivers, and station managers across Yola North, Yola South, Jimeta, and Mubi North local government areas. Data were analysed with descriptive statistics and chi-square tests using Statistical Package for Social Sciences (SPSS) version 26. Key findings revealed strong negative quality perceptions towards independent stations (76–87% perceived adulteration; χ² = 78.42, p < 0.001), widespread condemnation of opportunistic and geographically differentiated pricing (77–89%; χ² = 62.15, p < 0.001), significantly higher brand trust in major marketers especially NNPC (76–86%; χ² = 85.73, p < 0.001), and sharper sales volume decline among independent outlets (79–87%; χ² = 91.26, p < 0.001). The study concludes that subsidy removal has deepened competitive imbalance and eroded consumer confidence in independent operators. Recommendations include stricter quality enforcement by Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), transparent pricing guidelines, infrastructure support and concessional loans for independent marketers, and public education campaigns to restore trust and promote equitable petroleum retailing.