Global crude oil prices have fallen to around $70 per barrel, fuelling fresh expectations among Nigerians that the pump price of Premium Motor Spirit (PMS), popularly known as petrol, could soon be reduced.
The decline continued on Thursday as Brent crude, the international oil benchmark, dropped to about $70 per barrel from the $71 it closed at on Wednesday.
Despite the sustained drop in global crude prices, petrol prices across Nigeria have remained unchanged, with consumers increasingly questioning why the reduction has not been reflected at filling stations.
Oil prices have come under pressure in recent weeks due to concerns over weaker global demand, easing geopolitical tensions in some oil-producing regions and expectations of higher output from major producers.
Brent crude has now retreated significantly from the higher levels recorded earlier this year to around $70 per barrel.
Under Nigeria’s deregulated downstream petroleum market, changes in international crude oil prices are expected to influence the cost of refined petroleum products, including petrol.
The continued stability of pump prices, despite the decline in crude oil, has therefore sparked calls for marketers to adjust their prices downward.
The Federal Government, through the Ministry of Petroleum and the Federal Competition and Consumer Protection Commission (FCCPC), had earlier urged marketers to reduce petrol prices in line with the sharp fall in crude oil prices.
The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr Tunji Bello, however, clarified that the commission has no authority to fix or approve fuel prices in the country’s deregulated downstream sector.
“To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market. Our responsibility under the Federal Competition and Consumer Protection Act, 2018, is to promote competitive markets, prevent anti-competitive conduct, and protect consumers from unfair, deceptive and exploitative business practices,” Bello said.
He further noted that marketers often increase petrol prices almost immediately whenever global crude prices rise, but consumers have yet to enjoy similar relief despite the recent decline.
“We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is curious that it is taking forever for consumers to benefit significantly when crude prices fall. Competitive markets must work fairly in both directions,” he stated.
The call for lower pump prices has, however, been met with resistance from petroleum marketers, who have opposed threats of sanctions and warned they could embark on a nationwide strike.
As of Thursday, with Brent crude trading around $70 per barrel—below the level recorded before the recent conflict in the Middle East—petrol continued to sell for over ₦1,200 per litre in Lagos and close to ₦1,300 per litre in many other parts of the country.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
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