Petrol Prices Stay High Despite Crude Oil Drop to $73

By Queen Madaki The price of petrol across Nigeria has remained elevated despite a sharp decline in global crude oil prices, raising concerns among consumers and industry stakeholders who expected a corresponding reduction at filling stations. According to market data monitored by The Bureau Journal, crude oil prices dropped to about $73 per barrel on Wednesday, marking one of the lowest levels recorded since tensions between the United States and Iran escalated earlier this year. Reports indicate that crude oil declined from approximately $76.75 per barrel on Tuesday to around $73.50 per barrel on Wednesday as global markets responded positively to the peace agreement reached between the United States and Iran.

Consumers Yet to Feel Impact of Crude Oil Price Decline

Despite the significant reduction in international crude oil prices, petrol pump prices across many parts of Nigeria remain above N1,200 per litre. Checks by The Bureau Journal revealed that several filling stations continued to dispense petrol at around N1,205 per litre as of Wednesday, a development that has triggered questions from motorists and businesses struggling with high transportation and operational costs. Many Nigerians had anticipated a substantial drop in petrol prices following the decline in crude oil from highs of over $120 per barrel during the peak of geopolitical tensions to approximately $73 per barrel after the June 14 peace accord. Industry observers had projected that petrol could fall below the N1,000 per litre threshold if market forces were allowed to fully reflect the decline in crude oil prices.

Dangote Refinery Cuts Prices but Relief Remains Limited

Recently, the Dangote Petroleum Refinery reduced its ex-depot petrol price by N75 per litre, lowering the rate from N1,250 to N1,175 per litre. The move prompted several petroleum importers and marketers to make marginal downward adjustments to their own prices. However, consumers say the reduction remains insufficient compared to the scale of the decline witnessed in the international oil market. Earlier in the year, the refinery had increased its gantry price from N774 per litre to N874 per litre as crude oil prices surged during the Middle East crisis. At the same time, retail petrol prices climbed from around N830 per litre to over N1,300 per litre in several locations nationwide.

PETROAN Calls for Immediate Price Review

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged refiners, depot owners and fuel importers to review their prices downward in line with prevailing market realities. PETROAN National President, Billy Gillis-Harry, said the decline in crude oil prices presents an opportunity for operators in the downstream sector to transfer the benefits of reduced production costs to consumers.

“The recent decline in global crude oil prices presents an opportunity for stakeholders in the downstream petroleum sector to pass the benefits of lower crude oil costs to Nigerian consumers. Market realities should be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for the public,” Gillis-Harry stated.

The association also expressed concern over situations where imported petroleum products appear to arrive at lower costs than prices offered by some domestic suppliers. According to PETROAN, such pricing patterns highlight the need for stronger competition in the downstream petroleum industry to guarantee affordable fuel for Nigerians.

Dangote Refinery Explains Delay in Further Price Reduction

A senior official of the Dangote Refinery, who spoke on condition of anonymity, explained that the facility is still processing crude oil acquired at significantly higher prices during the period of heightened tensions in the Middle East. The official maintained that no importer is currently offering petrol below the refinery’s prevailing rates and suggested that broader market adjustments may take time to materialise. Industry analysts believe many importers are waiting for further price cuts from domestic refiners before implementing additional reductions at the retail level.

Global Oil Market Stabilises After US-Iran Agreement

Crude oil prices surged earlier this year amid fears that military tensions could disrupt shipments through the Strait of Hormuz, one of the world’s most important oil transit routes. However, prices have retreated in recent days as traders gained confidence that the agreement between the United States and Iran would help preserve stability in the region and ensure uninterrupted oil exports. International media reports indicate that investors continue to monitor shipping activity through the strategic waterway while assessing the broader security outlook across the Middle East. On Tuesday, United States President Donald Trump stated that a record 19 million barrels of oil passed through the Strait of Hormuz in a single day.

“Nineteen million barrels of oil flowed out of the Hormuz Strait yesterday, an all-time record. Oil prices are tumbling down, and the world is a much safer place,” Trump wrote on his social media platform.

As global crude oil prices continue to ease, Nigerians are expected to closely watch developments in the downstream petroleum sector for signs of further reductions in petrol pump prices. The Bureau Journal will continue to monitor developments in the energy sector and provide updates on fuel prices, crude oil trends and their impact on the Nigerian economy.