Pressure Mounts For Cheaper Petrol After Oil Market Eases

Consumers urge marketers to pass on falling international crude prices as experts explain why lower oil prices may not immediately translate into cheaper petrol at Nigerian filling stations.

Motorists Push for Immediate Petrol Price Reduction

MOTORISTS, commercial transport operators and commuters across several states have called on petroleum marketers and relevant authorities to reduce the pump price of Premium Motor Spirit (PMS) following the recent decline in global crude oil prices.

The demand comes after international crude prices retreated as geopolitical tensions in the Middle East eased, raising expectations that Nigerian consumers should begin to benefit from lower fuel costs.

Across Kano, Rivers, Borno, Taraba and Kwara states, motorists expressed frustration that petrol prices have remained between ₦1,200 and ₦1,400 per litre in many locations despite improvements in global oil market conditions.

Many consumers argued that increases in pump prices were implemented almost immediately when crude prices surged during the Middle East conflict, but reductions have been much slower despite the subsequent market correction.

Falling Crude Prices Raise Expectations

Brent crude, the global benchmark, fell significantly after fears of prolonged supply disruptions eased following reduced tensions involving Iran, Israel and the United States.

Although crude prices briefly climbed during the conflict amid concerns over the Strait of Hormuz—a vital shipping route for nearly one-fifth of global oil supply—they later retreated as markets stabilised.

The easing of international prices has encouraged consumers to expect corresponding reductions in domestic petrol prices, particularly in Nigeria, Africa’s largest crude oil producer.

Industry observers also noted that the Dangote Refinery recently reduced its ex-depot (gantry) price by ₦50 per litre to ₦1,125, while the landing cost of imported petrol has also declined modestly.

High Fuel Costs Continue to Burden Nigerians

Commercial drivers said persistently high fuel prices continue to squeeze profit margins while forcing transport fare increases that many passengers struggle to afford.

Some private vehicle owners disclosed that they now use their vehicles less frequently because of rising fuel expenses, relying instead on public transportation to reduce household costs.

In Maiduguri and several northern states, tricycle operators reported declining patronage as higher transport fares discourage passengers from making short-distance trips.

Residents also questioned why Nigeria, despite being a major oil-producing nation, has been unable to shield consumers from fluctuations in the international energy market.

Experts Explain Why Prices May Not Fall Immediately

Energy experts caution that crude oil prices represent only one component in determining the final retail price of petrol.

Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), Clement Isong, explained that changes in crude prices usually take time to affect refined petroleum products because marketers often sell inventories purchased at earlier, higher prices.

Professor Wumi Iledare, a petroleum economist, added that exchange rate movements, refining costs, transportation expenses, taxes, logistics and domestic pricing policies all contribute significantly to pump prices.

According to him, although sustained lower crude prices could eventually moderate fuel costs, an immediate return to pre-conflict prices should not be automatically expected.

Deregulated Market Shapes Pricing Decisions

The Nigerian National Petroleum Company Limited (NNPC Ltd) reiterated that Nigeria now operates within a deregulated downstream petroleum market, where retail prices are determined by prevailing market conditions rather than government controls.

The company’s spokesperson, Andy Odey, explained that product acquisition costs, foreign exchange fluctuations, transportation, distribution costs and marketers’ existing inventories all influence pump prices.

Similarly, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) maintained that individual marketers now determine retail prices according to their operating costs.

Despite these explanations, many Nigerians insist that greater transparency is needed to help consumers understand how international market movements are reflected in domestic fuel pricing.