CUSTOMER LOYALTY IN THE PETROLEUM INDUSTRY: THE ROLE OF SERVICE QUALITY IN DELTA STATE

Abstract

Nigeria’s economy is heavily reliant on refined petroleum products, which serve as a primary fuel source for power generation, industrial plants, automobiles, and various agro-allied and petrochemical industries. The market for these products is crucial to the nation's economic stability and growth, significantly influencing the socio-economic wellbeing of the country. Key players in the market include depot operators (wholesalers), retail outlets (retailers), and both domestic and industrial consumers. The market is highly competitive due to the large number of depots and retail outlets, with products and services often having similar performance characteristics and qualities. The recent passing of the Petroleum Industry Bill, which led to the removal of fuel subsidies, has ushered in transformative changes in the sector. This regulatory shift, coupled with increased investment in the marketing of petroleum products, has intensified competition within the industry. Additionally, the classification of petroleum product retail outlets and depot operators has undergone significant evolution, impacting their operations and the broader market landscape. This paper explores the competitive dynamics of the Nigerian refined petroleum products market, examining the roles of various stakeholders and the effects of recent legislative changes on industry practices and competition