Despite a sharp decline in global crude oil prices, Nigerians are yet to enjoy any significant relief at the pump, as petrol prices remain high across the country.
This is coming amid the continued implementation of the naira-for-crude oil deal between the Federal Government, Dangote Refinery, and other local refiners.
Speaking to DAILY POST on Tuesday, the spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, explained that the prevailing forces of demand and supply, along with the depreciation of the naira, are key reasons why local petrol prices have not dropped in line with international crude benchmarks.
As of Tuesday morning, Brent and WTI crude prices had dropped to $65 and $61 per barrel respectively, according to oilprice.com. However, pump prices across Nigeria continue to hover between N940 and N975 per litre, particularly in Abuja and other major cities.
Ukadike noted that although Dangote Refinery recently reduced its ex-depot price by N10 following the government’s decision to maintain the naira-for-crude arrangement, this has not translated into a drastic price crash at the retail level.
“The current price of petrol is competitive and fair enough for Nigerians,” Ukadike said. “The forces of demand and supply in the downstream sector, as well as the exchange rate—which currently stands at N1,604.48 per dollar—are major determinants of the final price.”
He emphasized that marketers should not be blamed for the price stagnation, adding that economic fundamentals continue to work against a potential drop.
Meanwhile, Nigerians continue to express frustration over the situation.
“I expected local petrol to be no more than N850 per litre, considering the drop in crude oil prices,” said Nurudeen Abdullahi, a resident of Abuja.
Another respondent, Evelyn Adebayo, criticized refiners and marketers for not reflecting international crude movements in local pricing.
“If it were a price hike, it would have been implemented immediately. But now that prices are falling globally, they’ve gone silent,” she lamented.
While Nigerians wait for further adjustments, industry experts say any real price relief may only come with a stronger naira and improved supply chain efficiencies.
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