Mr. Huub Stokman, CEO OVH
-By Felix Douglas
Giving his remarks in a panel session titled “What is Changing in the Fuel Retail Landscape?” during the 15th Oil Trading & Logistics Africa Downstream Week conference, the Chief Executive Officer of OVH Energy, Mr. Huub Stokman, made it known that the downstream giant with over 350 filling stations across the country has made market research in the last couple of years to know what Nigerian customers expect from retail stations.
Stokman said the first perspective is trust of the product and quantity that customers buy is the number one. “It is very clear they want trust and the right product and the right volume.”
The second aspect is customer service and there are two elements, one is prompt and fair treatment from pump attendants. Customers expect that products should be made available. With emphasis of availability, customers do not want a situation where products are scarce.
Customers want electronic payment with regards to cashless. “From the security point of view, no one wants to walk around with cash.”
Another element is that customers prefer well maintained and lit service stations to buy petroleum products and security when filling-up at night. A well-lit fuel station guarantees security, safety and mobility.
Convenient service and price in a deregulated market are paramount to customers. Thus, price competition plays a major role in consumers’ behavior. Quantity, customer service and profitability should be put into considerations and accommodated in pricing but most stakeholders do undermine it.
These are the points that are needed to be addressed quickly in the petroleum retail market.
Responding to question on the impact of pricing and deregulation that it makes people poorer since they will not be able to afford Premium Motor Spirit (PMS) also known as petrol, Stokman buttressed his point that “when the price goes up mobility will go down because there are number of people that cannot afford their cars running.”
According to the OVH CEO, the impact is usually a short term effect and the market will eventually stabilize. He was optimistic that given the strength of Nigeria’s economy over time the country will recover and normalcy will return in terms of pricing and affordability, “but there will be a bump in the road.”
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