Nigeria Agrees on Fresh Petrol Price Cuts as Falling Crude Oil Eases Costs | Nigeria’s federal government and key downstream petroleum stakeholders have agreed to reduce petrol prices further as global crude oil prices continue to decline.
The agreement followed a meeting in Abuja convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Participants included Dangote Refinery, depot operators and petroleum marketers, who discussed aligning fuel prices with current refining and import costs.
According to the regulator, lower crude oil prices should translate into lower prices for petrol and other petroleum products. Consequently, authorities urged industry players to adopt more cost-reflective pricing that benefits consumers.
Rabiu Umar, Chief Executive of the NMDPRA, said the recent decline in crude oil prices supports additional fuel price reductions. However, he noted that geopolitical tensions and market uncertainty continue to influence global oil prices.
Industry leaders also confirmed that motorists could soon pay less at the pump if crude prices remain on a downward trend. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said petrol prices in Abuja and nearby areas could fall below the current range of N1,150 to N1,299 per litre.
Similarly, Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said stakeholders agreed to continue reducing prices across the supply chain. He added that petrol could eventually sell for around N1,000 per litre or even less if crude prices continue to fall.
Even so, both industry leaders stressed that marketers cannot sell fuel below cost. They explained that pump prices depend on international crude prices, exchange rates and other operating costs. Therefore, fuel prices may not decline immediately whenever crude oil prices fall.
Gillis-Harry also pointed to continued market volatility. He revealed that crude prices increased by about $7 during the stakeholders’ meeting, highlighting the challenges of maintaining stable pump prices.
Meanwhile, industry players have already started lowering prices. Over the past three weeks, Dangote Refinery, depot operators and filling stations have reduced petrol prices by at least N100 per litre. In addition, the Nigerian National Petroleum Company (NNPC) Limited recently cut its pump price to N1,150 per litre, while several independent marketers now sell petrol between N1,191 and N1,240 per litre.
At the time of reporting, Brent crude traded at about $71 per barrel, while West Texas Intermediate stood at around $68 per barrel. As crude prices soften further, both the government and industry stakeholders expect petrol prices to continue trending downward.
Nigeria Agrees on Fresh Petrol Price Cuts as Falling Crude Oil Eases Costs | AviationGhana
