Petrol prices across Nigeria have remained elevated despite a sharp decline in global crude oil prices, which dropped to about $73 per barrel on Wednesday, their lowest level since tensions between the United States and Iran escalated earlier this year.
Data from Oilprice.com showed crude oil fell from $76.75 per barrel on Tuesday to $73.50 on Wednesday, continuing a downward trend that followed the recent peace agreement between the United States and Iran.
Despite the drop, many filling stations were still selling petrol for around N1,205 per litre as of Wednesday, leaving consumers questioning why pump prices have not adjusted to reflect the lower cost of crude oil.
Many Nigerians had expected petrol prices to fall below N1,000 per litre after crude prices retreated from highs of nearly $120 per barrel during the Middle East conflict to around $73 following the June 14 peace deal. However, those expectations have yet to be met.
Recently, the Dangote Refinery reduced its petrol gantry price by N75 per litre, lowering it from N1,250 to N1,175 per litre. The move prompted some importers to also adjust their prices downward.
Earlier in the year, the refinery had increased its gantry price from N774 to N874 per litre as crude prices surged amid geopolitical tensions involving the United States, Iran, and Israel. During the same period, retail petrol prices climbed from around N830 per litre to over N1,300 per litre.
With crude oil now trading around $73.69 per barrel, industry stakeholders say there is room for further reductions in petrol prices.
The Petroleum Products Retail Outlets Owners Association of Nigeria has urged refiners, depot operators, and fuel importers to reduce both ex-depot and retail pump prices to reflect current market realities.
PETROAN President, Billy Gillis-Harry, said the decline in global oil prices presents an opportunity for consumers to benefit from lower fuel costs. He stressed that pricing across the downstream sector should align with international market conditions to provide economic relief for Nigerians.
The association also raised concerns about reports suggesting that the landing cost of imported petrol may, in some cases, be lower than prices offered by local refiners, highlighting the need for greater competition within the downstream market.
However, a senior official at the Dangote Refinery, who spoke anonymously, maintained that importers are not currently selling petrol below the refinery’s prices. According to the source, the refinery is still processing relatively expensive crude oil purchased during the period of heightened geopolitical tensions.
Industry observers believe importers may be waiting for the refinery to make further price reductions before implementing additional cuts at the pump.