Petroleum marketers in Nigeria are anticipating a reduction in petrol pump prices following a notable drop in global crude oil prices. Despite Brent crude falling below $70 per barrel over the weekend, with West Texas Intermediate dipping to $65, petrol prices in Nigeria have remained high. The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) and other stakeholders have expressed optimism that a new price regime may begin as early as Monday, potentially bringing down petrol prices across the country.
Currently, petrol prices are still pegged between N915 and N955 per litre, depending on the location, even though the hike was initially triggered by rising crude prices amid geopolitical tensions between Israel and Iran. Now that the conflict has cooled and crude prices have plummeted, stakeholders expect a market correction. PETROAN’s spokesperson, Joseph Obele, confirmed that major players like Dangote Refinery, NNPC, and other depot owners may revise prices soon to reflect the global trend.
However, some marketers argue that prices won’t drop immediately due to the “old stock” factor—products procured when crude was more expensive still dominate the supply chain. Eche Idoko of the Crude Oil Refinery Owners Association of Nigeria emphasized that it might take one to two weeks before the benefits of cheaper crude are seen at the pumps. He also noted structural issues, including local refineries sourcing crude from abroad, which adds cost and limits the benefits of domestic refining.
Regional price disparities remain significant, with petrol selling at up to N980 in northern Nigeria due to distribution costs. Along the Lagos-Ibadan Expressway, retail outlets reported varied pricing, with some stations undercutting Dangote refinery’s distribution partners. Additionally, competition among importers like Rainoil, A.A. Rano, and NIPCO has led to slight downward adjustments in ex-depot prices, offering a glimmer of hope for potential consumer relief.
Meanwhile, fuel marketers have urged the Federal Government to take decisive action to ensure price stability and affordability. Recommendations include pegging the price of crude allocated to local refineries and making more crude available to domestic refiners like Dangote. According to the Independent Petroleum Marketers Association of Nigeria, such steps would prevent fuel prices from skyrocketing and protect low-income earners from economic shocks driven by volatile global oil markets.
Source: Punch