Crude oil falls below $90 but Nigerian petrol prices stay high

International crude oil prices have fallen sharply, with Brent crude sliding to around $93 per barrel after peaking at $115 in September. The decline follows renewed diplomatic efforts to end the U.S.-Iran conflict and reopen the Strait of Hormuz, a route that carries at least 25 per cent of global oil traffic.

In Lagos, the estimated landing cost of imported petrol has dropped to nearly N1,072 per litre, pushing import parity below Dangote Petroleum Refinery’s wholesale prices. Some independent marketers have reduced pump prices from N1,430 to N1,420 per litre, a N10 cut.

“If the decline in crude prices is sustained, there is no justification for refiners and marketers to continue to keep petrol and diesel prices relatively high.”

However, NNPC Limited and Optima have kept prices unchanged at N1,385 per litre. In Maiduguri, petrol still sells between N1,440 and N1,450 per litre, while prices in Abuja range from N1,405 to N1,420 per litre and in Lagos from N1,325 to N1,370 per litre.

The Federal Competition and Consumer Protection Commission has stepped up pressure on refiners and marketers to pass the lower crude costs to consumers. Executive Vice Chairman Tunji Bello said there is no justification for keeping petrol and diesel prices relatively high if the downward trend continues.

Bello added that the commission is closely monitoring domestic fuel prices and expects savings to reach consumers at the pump without undue delay. Marketers have blamed the eight-month surge in domestic fuel prices on crude volatility and the blockade of the Strait of Hormuz following the outbreak of the US-Iran conflict.

Before the conflict began, Brent crude closed at $72.48 per barrel on February 27, while petrol sold for between N839 and N925 per litre in Lagos and Abuja. The commission said it would continue working with industry stakeholders to ensure consumers benefit from falling global costs.