Key points
- Crude oil fell from $76.75 to $73.50 per barrel on Wednesday, its lowest since the US-Iran conflict started
- Many Nigerian filling stations are still selling petrol at around N1,205 per litre despite the drop
- PETROAN has urged refiners, depot owners and importers to pass lower crude costs on to consumers
Nigerian petrol prices have remained stubbornly high even as crude oil fell to $73.50 per barrel on Wednesday, its lowest point since the United States-Iran conflict began in February, with filling stations across the country still selling fuel at roughly N1,205 per litre.
Data from Oilprice.com showed crude dropped from $76.75 per barrel on Tuesday to $73.50 on Wednesday, continuing a slide that began after Washington and Tehran signed a peace deal on June 14. Before the agreement, crude had surged to about $120 per barrel as tensions threatened shipping through the Strait of Hormuz.
Consumers waiting for prices to fall below N1,000
Many Nigerians had expected petrol prices to dip below N1,000 per litre once crude stabilised at lower levels following the peace deal. That expectation has not materialised, and pump prices remain more than N200 above where the market stood before the conflict pushed costs sharply higher.
The Dangote Refinery has moved to reduce its gantry price by N75 per litre, bringing it down from N1,250 to N1,175. Importers have made modest adjustments as well, though neither move has translated into meaningful relief at the pump. A refinery official, speaking anonymously, said the facility is still processing crude purchased at elevated crisis-era prices, which limits how quickly retail prices can fall.
Analysts and market watchers say importers appear to be holding back further reductions, waiting to see whether the Dangote Refinery takes a more aggressive step first before lowering their own rates.
PETROAN calls on operators to reflect market realities
The Petroleum Products Retail Outlets Owners Association of Nigeria has called on refiners, depot owners and importers to align their ex-depot and retail pump prices with the current decline in global crude costs.
PETROAN National President Billy Gillis-Harry said the drop in crude prices presents a clear opportunity to deliver economic relief to consumers. He also flagged a pricing anomaly, noting that in some cases the landing cost of imported petroleum products appears lower than the prices charged by domestic refiners, a development he described as surprising and one that points to the need for greater competition in the downstream sector.
Meanwhile, US President Donald Trump said on Tuesday that a record 19 million barrels of oil flowed through the Strait of Hormuz on Monday, attributing the price decline directly to restored shipping traffic through the strategic waterway. With crude now trading at $73.69 per barrel, stakeholders expect further pressure on operators to bring pump prices in line with global market conditions.