Hussaini Umar
Global crude oil prices have declined to around $70 per barrel, renewing public expectations that petrol prices in Nigeria could fall. However, filling stations across the country continue to sell Premium Motor Spirit (PMS), commonly known as petrol, for more than ₦1,200 per litre in many locations.
Brent crude, the international benchmark for oil prices, extended its downward trend on Thursday as easing geopolitical tensions and expectations of increased global supply weighed on the market. The decline follows a period of elevated prices triggered by tensions in the Middle East.
Despite the sharp drop in crude prices, marketers have not adjusted pump prices, prompting renewed concerns from motorists and consumer groups. Many Nigerians argue that while fuel prices typically rise quickly when global oil prices increase, reductions are often much slower when international prices decline.
Under Nigeria’s deregulated downstream petroleum market, international crude oil prices are expected to influence the cost of refined petroleum products. Nevertheless, industry stakeholders note that other factors—including foreign exchange rates, import costs, distribution expenses, and existing inventories purchased at higher prices—also affect the retail price of petrol.
The Federal Competition and Consumer Protection Commission (FCCPC) has previously expressed concern over the slow pace of downward price adjustments, stressing that while it does not regulate petrol prices in a deregulated market, it expects fair competition and consumer protection. The commission has urged marketers to ensure that price movements reflect prevailing market conditions where appropriate.
Meanwhile, petroleum marketers have maintained that immediate price reductions may not be feasible, citing operational costs and the need to exhaust existing fuel stocks acquired when international prices were significantly higher. Some industry groups have also cautioned against regulatory actions they believe could undermine the principles of market deregulation.
As crude prices remain near the $70 mark, consumers and businesses will be watching closely to see whether sustained declines in global oil markets eventually translate into lower fuel prices at filling stations across Nigeria.
