Petrol remains pricey as crude crashes to $73

Despite a sharp fall in global crude oil prices to $73 per barrel, the lowest since the US-Iran conflict began, petrol prices in Nigeria remain stubbornly high. Consumers had anticipated a significant drop, with expectations of prices falling below N1,000 per litre, following the crude oil rate's decline from around $120 per barrel to $73 after a peace deal between the US and Iran was reached on June 14.

However, many filling stations continue to sell petrol at approximately N1,205 per litre, a price point that consumers argue does not align with current international oil rates. While the Dangote refinery recently reduced its gantry price by N75 per litre, from N1,250 to N1,175, and prompted other importers to adjust their prices downwards, the overall cost remains a concern.

The Petroleum Products Retail Outlets Owners of Nigeria (PETROAN) has called on refiners, depot owners, and importers to reduce their ex-depot and retail pump prices. PETROAN National President, Billy Gillis-Harry, stated that the decline in global crude oil prices offers an opportunity for the downstream petroleum sector to pass these benefits to consumers. He stressed that market realities must be reflected in pricing for the public's fairness and economic relief.

Gillis-Harry also voiced concern over domestic pricing trends, noting that the landing cost of imported petroleum products sometimes appears lower than prices offered by domestic refiners. He urged operators to align their prices with the current international crude oil trading price of $73.69 per barrel, expecting prices to fall below the current N1,200 per litre.

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The recent decline in global crude oil prices presents an opportunity for stakeholders in the downstream petroleum sector to pass the benefits of lower crude oil costs to Nigerian consumers. Market realities should be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for the public.