Petrol prices across Nigeria have remained elevated despite a significant decline in global crude oil prices, which fell to about $73 per barrel on Wednesday, the lowest level recorded since the outbreak of the US-Iran conflict earlier this year.
Data from international energy markets showed crude oil dropping from $76.75 per barrel on Tuesday to around $73.50 per barrel on Wednesday, continuing a downward trend that began after the United States and Iran reached a peace agreement.
Despite the reduction in crude prices, Nigerians are yet to see a corresponding drop in fuel costs. Petrol was still being sold at an average of ₦1,205 per litre at many filling stations nationwide as of Wednesday, leaving consumers frustrated and questioning why pump prices have not reflected the changes in the international market.
During the height of tensions in the Middle East, crude oil prices surged to nearly $120 per barrel, forcing marketers to raise petrol prices from around ₦830 per litre to over ₦1,300 per litre in some locations. With crude now trading at approximately $73 per barrel, many expected petrol prices to fall below ₦1,000 per litre.
Although the Dangote Petroleum Refinery recently reduced its ex-depot petrol price by ₦75 per litre, lowering it from ₦1,250 to ₦1,175, the reduction has yet to significantly impact retail prices. Importers also adjusted their rates downward following the refinery’s move.
Industry stakeholders have called for further reductions. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) urged refiners, depot owners and fuel importers to review their pricing structures to reflect the current reality of lower crude oil costs.
PETROAN President, Billy Gillis-Harry, said the fall in international oil prices presents an opportunity for operators in the downstream sector to provide relief to consumers by reducing both ex-depot and pump prices.
He stressed that market conditions should be reflected in fuel pricing, adding that Nigerians deserve to benefit from the decline in global crude prices.
The association also noted concerns that, in some cases, imported petroleum products appear to have lower landing costs than fuel supplied by local refiners, highlighting the need for greater competition in the market.
However, a source at the Dangote refinery explained that further reductions may not happen immediately because the refinery is still processing crude oil purchased at higher prices during the Middle East crisis.
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The source maintained that fuel importers are unlikely to reduce their prices significantly until local refiners make additional adjustments.
Oil prices had risen sharply during the conflict due to fears that shipments through the Strait of Hormuz could be disrupted. Since the peace agreement between Washington and Tehran, prices have declined as confidence returned to the market and shipping activities gradually normalised.
United States President Donald Trump recently stated that a record 19 million barrels of oil passed through the Strait of Hormuz in a single day, a development he said contributed to the sharp decline in oil prices.
Market analysts believe petrol prices may eventually decline if crude oil remains at current levels and refiners begin processing cheaper crude purchased after the crisis. For now, however, consumers continue to bear the burden of high fuel costs despite easing tensions in the global oil market.
