Despite the global drop in crude oil prices, Nigerians are yet to enjoy any significant reduction in the price of Premium Motor Spirit (PMS), popularly known as petrol. According to the Independent Petroleum Marketers Association of Nigeria (IPMAN), the situation is largely due to two major factors: the forces of demand and supply, and the depreciating exchange rate of the naira.
Chinedu Ukadike, spokesperson for IPMAN, explained in an interview with NIGPOST that even though the Nigerian government renewed the naira-for-crude deal with Dangote Refinery and other stakeholders, these efforts haven’t been enough to slash local fuel prices.
Ukadike highlighted that while global crude prices dropped to around $65 per barrel (with Brent and WTI at $61), Nigerians expected an immediate reflection of this on local petrol prices. However, that hasn’t been the case.
International crude prices have been affected recently by global economic moves, including trade tensions between the U.S. and China, and OPEC+ supply cuts. A brief pause in U.S. tariffs on most countries—excluding China—offered some relief, but the effects haven’t translated to Nigeria’s local market.
Nigerians, meanwhile, are questioning why they’re paying as high as N940 to N975 per litre in Abuja, when crude oil prices are clearly on the decline.
Nurudeen Abdullahi, a resident of Abuja, shared his frustration, saying:
“With the current crude benchmark of $65, petrol should not cost more than N850 per litre. It’s unfair to Nigerians.”
Similarly, Evelyn Adebayo voiced her disappointment:
“If the crude price had gone up, petrol price would’ve been increased instantly. But now that it’s down, we’re not seeing any major change.”
While Dangote Refinery has reduced its ex-depot price by N10 per litre following the government’s continuation of the naira-for-crude initiative, marketers maintain that this isn’t enough to drastically bring down prices at the pump.
Ukadike defended the marketers, stating:
“The current fuel prices reflect the reality of our economy—governed by demand and supply, and the foreign exchange rate. With the naira trading at N1,604.48 per dollar officially, we’re already operating under very tight margins.”
For now, Nigerians continue to bear the brunt of high fuel costs, hoping that stabilizing factors in forex and increased local refining will bring long-term relief.
What do you think about the current fuel price situation in Nigeria? Do you believe marketers are being fair? Share your thoughts with us in the comments!
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