Why Nigerians Haven’t Seen a Major Drop in Fuel Prices – Marketers Explain

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has clarified why Nigerians are yet to experience a significant reduction in the pump price of petrol, despite a drop in global crude oil prices.

According to IPMAN spokesperson Chinedu Ukadike, the renewal of the naira-for-crude arrangement between the Nigerian government, Dangote Refinery, and other processors hasn’t led to lower fuel prices due to key market forces. He pointed to the influence of supply and demand dynamics as well as the depreciation of the naira against the dollar.

Speaking to journalists on Tuesday, Ukadike explained that although global crude prices recently dipped Brent and WTI crude were trading at $65 and $61 per barrel respectively—this has not translated into cheaper fuel locally. He noted that factors such as the ongoing US-China tariff tensions and OPEC+ supply cut agreements have impacted global oil trends.

Despite some stability after the US announced a global tariff pause (excluding China), Nigerians say they haven’t felt the benefits of falling global crude prices. Abuja resident Nurudeen Abdullahi believes petrol should sell for no more than N850 per litre under the current circumstances, citing the decline in crude prices from $72 to around $65 per barrel.

Another citizen, Evelyn Adebayo, echoed similar sentiments, accusing refiners and marketers of being quick to raise prices but slow to reduce them when international rates fall.

In response, the Dangote Refinery did reduce its ex-depot price of petrol by N10 following the government’s continued commitment to the naira-for-crude policy. However, Ukadike stressed that fuel prices remain high mainly due to supply and demand challenges and the high foreign exchange rate at N1,604.48 per dollar as of Tuesday.

He concluded that these two factors are critical in setting fuel prices, adding that the current rates of N940 to N975 per litre in Abuja are reflective of the current market conditions.