Key points
- Motorists in the FCT say petrol prices remain high despite falling global crude oil prices.
- Crude oil price reportedly dropped from about $150 to below $80 per barrel.
- Dangote Refinery reduced gantry price by N75 per litre following the decline.
- Filling stations in Abuja show mixed pump prices, with some adjusting while others have not.
- Marketers cite high operating costs, inventory risks and financing challenges as key constraints.
Main Story
Motorists in the Federal Capital Territory (FCT) say they are yet to benefit from the recent drop in global crude oil prices, as petrol prices at many filling stations remain elevated despite downward movements in the international market.
Reports show that global crude oil prices have fallen from about $150 per barrel to below $80 per barrel, following a reduction in geopolitical tensions between the United States and Iran. The price decline has already triggered adjustments in Nigeria’s downstream sector, including a reduction of N75 per litre in Dangote Refinery’s petrol gantry price. However, retail pump prices across Abuja remain inconsistent. While some stations such as MRS now sell between N1,241 and N1,261 per litre, others continue to dispense petrol at rates ranging from N1,335 to N1,360 per litre, depending on supply sources and location.
The uneven pricing has left many consumers questioning why the global price relief has not translated into uniform reductions at the pump. Industry operators say the lag is driven by structural realities within Nigeria’s deregulated fuel market. Marketers explain that products purchased at earlier, higher prices cannot be immediately repriced without resulting in financial losses.
The National Publicity Secretary of the Independent Petroleum Marketers of Nigeria (IPMAN), Chinedu Ukadike, said the delay reflects market risk exposure, rising operational costs and the absence of mechanisms to cushion sudden price fluctuations.
He noted that the financial pressure on marketers has increased significantly due to higher capital requirements for fuel procurement, alongside rising interest rates, insurance costs and general business expenses. Ukadike said: “The amount of money needed to buy petroleum products today is far higher than it was in the past.” He added: “At the same time, interest rates on bank loans remain high, insurance costs are increasing, and the overall cost of doing business continues to rise.”
According to him, pricing adjustments are also shaped by demand and supply dynamics, meaning retail prices often lag behind movements in global crude oil benchmarks. To address these challenges, he called for reforms to stabilise the downstream sector, including the creation of a Petroleum or Energy Bank to provide targeted financing for marketers and reduce exposure to market volatility. He said such an institution could help absorb risks, improve product distribution and support more stable pricing across the value chain.
Ukadike also urged government to introduce additional incentives for independent marketers and strengthen domestic refining capacity as a long-term solution to price instability. He added that full rehabilitation of local refineries, including Port Harcourt and Kaduna, would increase competition, reduce import dependence and improve price stability in the sector.
He further warned that fuel price movements have wide economic consequences, noting that increases in petrol costs feed directly into transport fares and broader inflationary pressures across the economy.
The Issues
- Delay in pump price adjustment despite falling global crude oil prices
- High inventory costs from previously purchased expensive stock
- Rising cost of borrowing, insurance and logistics for marketers
- Lack of uniform pricing in a deregulated fuel market
- Weak domestic refining and supply constraints
What’s Being Said
- The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said fuel importers should reflect the drop in crude oil prices in retail pump prices.
- PETROAN President, Billy Gillis-Harry said: “The recent drop in global crude oil prices offers an opportunity to pass the savings on lower crude costs to consumers.”
- Independent Petroleum Marketers of Nigeria (IPMAN) spokesperson, Chinedu Ukadike said: “Marketers who purchased fuel at higher prices cannot immediately adjust their pump prices without suffering losses.”
- Ukadike said: “There are no government compensation mechanisms to cushion marketers against losses from sudden price changes.”
- He added: “The amount of money needed to buy petroleum products today is far higher than it was in the past.”
- Ukadike also said: “Interest rates on bank loans remain high, insurance costs are increasing, and the overall cost of doing business continues to rise.”
- He said: “Fuel distribution affects every sector of the economy. When fuel prices rise, transportation costs increase and inflation spreads across society.”
What’s Next
- Fuel marketers may gradually adjust pump prices as older, higher-cost stock is exhausted.
- Stakeholders are calling for financing reforms, including a proposed energy bank for the downstream sector.
- Attention is shifting to domestic refineries as a potential stabilising factor in pricing.
Bottom Line
Despite falling global crude oil prices, petrol costs in the FCT remain high due to supply timing gaps, operating costs and market structure challenges, leaving consumers yet to feel the full impact of international price relief.
 say they are yet to benefit from the recent drop in global crude oil prices, as ...){kind=link}