₦airaland Forum

The price of petrol has remained high even as crude oil prices crashed to $73 per barrel on Wednesday, their lowest level since the US-Iran conflict began in February.

According to Oilprice.com, crude oil fell from $76.75 per barrel on Tuesday to $73.50 on Wednesday, extending the decline in oil prices since the United States and Iran signed a peace deal.

However, petrol prices have yet to drop in line with the latest crude oil rates. As of Wednesday, many filling stations were still selling petrol at about N1,205 per litre, a price many consumers said does not reflect current global oil prices.

Following the drop in crude oil prices from a high of about $120 per barrel during the United States-Iran conflict to around $73 after a peace deal was reached on June 14, many Nigerians expected petrol prices to fall below N1,000 per litre. That expectation has yet to materialise.

Recently, the Dangote refinery reduced its petrol gantry price by N75 per litre, from N1,250 to N1,175, prompting importers to also adjust their prices downward.

PUNCH recalls that the Dangote refinery increased its gantry price from N774 to N874 per litre when the Middle East crisis started. This came as crude oil prices rose to $84 per barrel from below $70 in the days leading up to the airstrikes involving the United States, Iran, Israel, and other countries. Filling stations had earlier raised petrol prices from about N830 to over N1,300 per litre during the crisis.

With crude now trading at $73.69 per barrel, stakeholders expect petrol prices to fall below the current level of over N1,200 per litre.

The Petroleum Products Retail Outlets Owners Association of Nigeria called on refiners, depot owners, and petroleum product importers to reduce their ex-depot and retail pump prices in line with the decline in international crude oil prices.

The National President of PETROAN, Billy Gillis-Harry, said the drop in global crude oil prices presents an opportunity for operators in the downstream petroleum sector to pass on the benefits of lower crude costs to consumers.

In a statement signed by the National Public Relations Officer of PETROAN, Dr Joseph Obele, on Friday, Gillis-Harry said market realities should be reflected in both ex-depot and retail pump prices.

“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,” Gillis-Harry said.

Gillis-Harry also expressed concern over pricing trends in the domestic market, saying, “In some instances, the landing cost of imported petroleum products appears to be lower than the prices offered by domestic refiners. This development is surprising and underscores the need for a more competitive downstream petroleum market that guarantees consumers access to the most affordable products available.”

However, a Dangote refinery official told our correspondent that no importer was selling petrol below the refinery’s current rates. The official, who pleaded anonymity, said the refinery was still processing relatively expensive crude purchased during the crisis.

It appears importers are waiting for the Dangote refinery to take the lead before lowering their prices further.

Oil prices surged during the conflict as tensions threatened shipping through the Strait of Hormuz. However, prices have declined in recent days as traders grew optimistic that the US-Iran agreement would help keep the strategic waterway open, alongside reports of a slight increase in shipping traffic.

According to CNN, traders are still monitoring whether traffic continues to flow smoothly through the strait and whether tensions remain contained across the Middle East.

On Tuesday, President of the United States, Donald Trump, said a record 19 million barrels of oil flowed out of the Strait of Hormuz on Monday. According to Trump, oil prices are tumbling as a result of the oil flow through Hormuz.

“19 million barrels of oil flowed out of the Hormuz Strait yesterday, an all-time record. Oil prices are tumbling down, and the world is a much safer place,” Trump said in a post on his social media handles.

Talks set to take place on Friday between the ⁠United States ⁠and ​Iran on implementing the 14-point agreement to end their war have been cancelled, Switzerland's foreign ministry has announced, Report informs via The Guardian.

The talks were set to begin in the tiny Swiss village of Obbürgen on Friday, two days after the signing of a memorandum of understanding (MOU) that opened a 60-day window to negotiate a permanent understanding about Iran's nuclear program while getting oil traffic moving through the Strait of Hormuz.

The White House said the US looked forward to "beginning technical talks as soon as possible", as it announced that JD Vance, who is leading negotiations for the Trump administration, would now not be travelling.

"The logistics of these negotiations have never been simple or predictable. As of now, the vice-president is not departing tonight," a White House spokesperson said late on Thursday.

The cancellation of the talks came so abruptly, that Vance's staff and a small pack of journalists had even gathered at Joint Base Andrews outside Washington in anticipation of the trip. Dozens of White House officials, advance staffers and media were already in Switzerland to prepare for Vance's anticipated arrival.

Iran's supreme leader, Ayatollah Mojtaba Khamenei, said on Thursday that he had approved the MOU despite reservations, while at the same time, the United States officially lifted a blockade of Iranian ports.

But the semi-official Tasnim news agency said before the talks were cancelled that Iranian negotiators needed ⁠to see signs of implementation of the interim agreement from the US before the next rounds of peace talks could begin, and that there was no confirmation that its delegation would travel to Geneva.

The cancellation of the talks came after a report from Al-Mayadeen, an Arabic language network that is politically allied with the Iranian-backed Lebanese militant group Hezbollah, that said Tehran was delaying sending its delegation to Switzerland due to Israel's ongoing military campaign in Lebanon.

Israel, which was not included in the peace talks and has distanced itself from the US-Iran agreement, has continued its fighting against Hezbollah in Lebanon and launched fresh ​airstrikes early on Thursday.

The MOU calls for the "permanent termination" of the war in Lebanon and for the country's "territorial integrity and sovereignty" to be ensured. US President Donald Trump has said he expects a complete ceasefire on all fronts.

The government of Benjamin Netanyahu has continued to stress that it has no intention of withdrawing from Lebanon, leading to open criticism from Trump and Vance of Israel's operations.

On Friday, Iran's chief negotiator Mohammad Ghalibaf, warned against any breach of the agreement, saying "in case of misconduct, breach of treaty and excess of the other side, We have no doubt that decisive respond will be given to the enemy."

The diplomatic back-and-forth over the planned talks adds to the uncertainty over ​whether a lasting truce can be found to a regional war that has killed at least ‌7,000 people, sent energy prices soaring and shaken global markets.

Khamenei on Thursday said Trump had signed the deal "out of desperation" and signalled that upcoming talks would not be easy.

"If the American side wants to be too demanding, we will not accept it," he said in a written message. The deal gives negotiators 60 days to reach agreement on the status of Iran's nuclear program unless ‌both sides agree to an extension, and set up a $300bn reconstruction fund for Iran and other financial incentives.

On Thursday, US forces lifted their naval blockade of Iranian ports that had prevented ships from sailing to or from the Islamic Republic, the US military said, noting that American warships "will remain in the general area".

Activity was still muted in the Strait of Hormuz, the strategic bottleneck for energy shipments that Iran blockaded during the conflict.

Atlantis585:
So what’s the point now? Is Oshiomole trying to escalate his fight with Toto-beggar Akpabio by bringing up a matter that has been concluded?

The Senate spokesperson, Yemi Adaramodu, has said that allegations of signature forgery made by Senator Adams Oshiomhole (Edo North) on the suspension of Senator Natasha Akpoti-Uduaghan (Kogi central) will be reviewed.

Adaramodu said this in an interview with The cable. He said: “The Senate will take a cursory look at either extraneous, spontaneous or intentional comments from any senator appropriately.”

Vanguard reported that Oshiomhole alleged that the names of at least three senators were improperly included on the Senate Committee report that recommended the six-month suspension of Senator Natasha Akpoti-Uduaghan of Kogi Central.

According to Oshiomhole, several lawmakers whose names appeared on the report told him they neither signed the document nor endorsed its recommendations.

However, speaking to The Cable on Tuesday, Senate spokesperson said: “We are going to review any statements made by him (Oshiomhole). The senate will take a cursory look at either extraneous, spontaneous or intentional comments from any senator appropriately.

“We are going to look into it. We will take a stand and everyone will know where we stand. But we can say no senator has reported that his or her senator was forged during the Natasha matter.

“It was debated on the floor of the senate openly at the plenary in the full glare of every Nigerian and even the international audience, and so nothing to hide.

“All Nigerians knew where we stood then on the issue of Natasha… that she ran foul of the senate’s orders. And we are orderly because we are bounded by orders of the senate.”

On the Independence of the senators, he said: “Nobody will say that he or she was coerced or somebody’s signature was forged; that has never happened in the senate and it cannot happen. It has never happened.

“Senators are independent-minded people. We are mature men and women. And if you have any infraction against anybody, that person can, without any advocate from anywhere, that person will show it.

“So there’s nothing like that. I’m just hearing it for the first time. That’s very strange.”

nairalanda1:
So, why did you then oppose subsidy removal before. Your words below betray you...



RIght, if subsidy had gone in 2012, or even in 1993, dangote won't have been the only refinery.

Accept it, you made your bed in the name of tired platitudes about how subsidy removal would harm nigerians, which was the government's position from 1973 till 2023, when the resultant debt made it unsustainable, now you got to lie in it.

Next time, think about why certain decisions are made. If subsidy had gone in 2012, or even in 1993, we would have had a competitive fuel market.

mascot87:
You can make comments in capital letters, paint them all red and very lengthy and still write rubbish without substance

nairalanda1:
I remember you were opposing subsidy removal, and you probably think it was a disaster.

Well, government NOT removing subsidy for decades, until the rising debt resulting forced tinubu to remove it (alongside lenders refusing to borrow money to fill the budget deficit)....is why dangote is the only game player in town

If subsidy had gone in 2012, when you and your fellow nigerians were protesting , by now we would have had a lot of refineries up and running. The refusal to remove subsidy then left people like Dangote as the only one whom banks and lenders were willing to lend money to build his refinery (before you shout government...Dangote spent 20 billion dollars on the refinery, only 3 billion came from CBN and government)...because if Dangote defaults, they pay themselves back from his other businesses.

No one is going to invest in a refinery where there are price controls.Because the purpose of investing is to make money, not to do charity for people. Everything that goes into making a refinery work is imported, plus workers must be paid very very well . But you guys kept on crying for subsidy anytime government wanted to remove it. That wrecked the NNPC refineries because they were being forced to run at a loss in the name of subsidy. That is why they cannot work today.

Or to put it this way, subsidy prevents refineries from making enough profit.

Next time, not every government decision is oppressive. Some are, not all.

bassdow:
Actually love those who reason like you do. Not saying your thoughts are RIGHT or WRONG but at least you QUESTIONing things.

mySelf have had some doubt especially going by the way it's being HYPEd.

franvincoop:
You were missing in this forum for a while welcome back.
But remember say person wey wear white no suppose embrace person wey dey sell charcoal.
Prince Jegede Sokoya once said "take a pig to London and back, it will still be a pig"

obacasmir:
😂.
This your own comment na real upgrade of mine..

obacasmir:
Who is fahsola eyeing like kwam 1?

Kwam 1 patented Ganusi look

miketayo:
I don't support BAT.. but I'm not a mumu either. You came online and typed rubbish only to embarrass yourself.

miketayo:
Which free health care? They have millions of starving citizens

Ofemannnu:
Thank God Tinubu has paid off all IMF loans borrowed by previous govts.
World bank loan is just $18 billion?
Within 2 years,Tinubu has paid almost $11 billion Nigeria's debts.
He should borrow more if he is using it for the benefit of Nigerians.South Africa owes 5 times the debt of Nigeria
Nigerians shall prosper.

andrewza:
Issue comes when you compare the debt as a portion of the budget. That matters far more since south Africa is able to better leverage its GDP in to a budget for the country


So looking at national budget

South Africa 146 billion dollars
Nigeria 32 billion dollars
Egypt 81 billion dollars

South Africa debt repayments is 21 billion
Nigeria debt repayments is 11 billion
Egypt 41 billion

So even with a high dept to GDP South Africa pays less money as a percentage of its budget to pay it off.

Daydream252:
Bro you get heart oh do you think about the future of your kids when you say this government is doing well

Freetech:
Most of the comments here are as a result of financial illetracy.
Talking about loan the first thing to consider is the balance sheet; Asset -liability. When it's positive irrespective of the size of your debt you are good to go
In case of Nigeria Reserves, population and natural resources remain high and far more than 18bil debt being discussed here.
Check the loan of other African countries to their population, you realise Nigeria is doing well. Nigeria debt is far lower when you consider total debt off Africa apart from world bank
Moreover most the loan are attached to verifiable project like East west road, railway, coastal road and Sokoto-badagry road
Why do you think the rating institutions continue rating Nigeria higher

Lithiumite:
You see your life,all the lies you spread in that your sadistic WhatsApp groups....pushing puerile propaganda and majority of your ilk will swallow hook,line and sinker without even thinking.

Lithiumite:


How much are you paying in taxes compared to those in US to expect givt to ordinarily provide you all those things you mentioned......california state budget alone is almost 10 times that of Nigeria, we dont even come close to NY or texas.

Nigerians total crude oil income is just N28tr which gives you just about $20b thats all your country makes from your so called crude oil that makes you feel you are the richest country in the world......just $20b,money dangote used to build is refinery is what Nigeria is making in a year for 220m citizens.

Thats not even enough to fund 50% of the 2026 budget,you then have a budget deficit of 21trillion,how do you want to fund that? I guess from obi's personal money,bloody jokers