Fuel prices in Nigeria may soon witness a decline following a drop in global crude oil prices triggered by the ceasefire agreement between Israel and Iran.
This was disclosed by the Independent Petroleum Marketers Association of Nigeria (IPMAN) during an interview on Wednesday.
Global oil prices, which surged to $79 and $76 per barrel for Brent and West Texas Intermediate (WTI), respectively, during the 12-day conflict, have now dropped significantly. As of Wednesday morning, Brent crude traded at $68.14 per barrel, while WTI was at $65.38.
The temporary surge in oil prices had impacted Nigeria’s domestic market, with Dangote Refinery raising its ex-depot petrol price from ₦825 to ₦880 per litre. Consequently, its retail partner, MRS filling station, adjusted pump prices to between ₦925 and ₦945 per litre in Lagos and Abuja, up from ₦875 and ₦895.
Other marketers, including NNPC, NIPCO, Ranoil, AA Rano, Empire Energy, and Eterna, also raised prices to between ₦945 and ₦975 per litre at their Abuja outlets.
However, with the global crude market stabilising, domestic petrol prices are expected to ease accordingly.
Speaking to our correspondence, IPMAN spokesperson Chinedu Ukadike said the decline in international crude oil prices would lead to a reduction in local pump prices.
“As global oil prices fall, so too will the domestic petrol price, due to reduced production costs. Additionally, fluctuations in the foreign exchange market also impact pricing. We expect prices to adjust downward in response,” Ukadike stated.
He emphasised that price volatility is an inherent characteristic of a deregulated downstream sector. Ukadike also called on the Federal Government to establish an energy-focused financial institution that would provide credit support to industry players during market disruptions.
