Despite a significant drop in global crude oil prices, Nigerians are yet to feel the impact at filling stations as petrol continues to sell for over N1,000 per litre across many parts of the country. The development has sparked frustration among motorists, businesses, and households who expected fuel prices to decline after international oil markets cooled from recent geopolitical tensions.
Brent crude, the global benchmark for oil prices, has fallen sharply to around $73 per barrel, while the US benchmark, West Texas Intermediate (WTI), dropped below $70 per barrel. The decline follows the easing of tensions in the Middle East after the United States and Iran reached a peace agreement, restoring confidence in global oil supply and reducing fears of disruptions through the strategic Strait of Hormuz.
Before the conflict between the US, Iran, and Israel escalated, petrol sold for between N770 and N800 per litre in many Nigerian cities. However, despite crude prices now nearing pre-war levels, fuel prices remain significantly higher, ranging between N1,200 and N1,300 per litre depending on location. So far, only a marginal reduction of about N75 has been recorded since oil prices began their downward trend.
Industry stakeholders argue that current pump prices do not reflect prevailing market realities. Some marketers believe the ex-depot price of petrol should be below N700 per litre rather than the current level of around N1,180. This has intensified calls for a downward review of fuel prices, especially as consumers continue to grapple with rising transportation costs and inflation driven by expensive energy.
However, experts caution that lower crude oil prices alone may not guarantee immediate relief at the pumps. Oil and gas analyst Dr. Ayodele Oni explained that Nigeria’s deregulated petroleum market is heavily influenced by exchange rates, as imported fuel is priced in dollars. According to him, meaningful reductions in petrol prices will depend not only on falling crude prices but also on the stability of the naira. Until both factors align, many Nigerians may have to wait longer before experiencing any substantial reduction in fuel costs.
source: dailytrust