₦airaland Forum

The latest reduction in petrol prices by the Dangote Petroleum Refinery should have brought relief to Nigerian consumers.

Instead, it has exposed a persistent and troubling pattern in the country’s downstream petroleum sector: prices rise quickly but fall reluctantly.

Last week, the refinery cut its gantry price of petrol by ₦100 per litre, bringing it down to ₦1,075 per litre, following a drop in global crude oil prices.

The international benchmark, Brent crude, had fallen significantly from around $110 per barrel to roughly $92, driven by easing geopolitical fears and signals that tensions involving the United States, Iran and Israel might soon de-escalate.

Ordinarily, such a development would translate into immediate relief for motorists and transport operators across Nigeria.

Yet across many filling stations, the price of petrol has barely moved.

A Market That Adjusts Only One Way

In Abuja, some retail outlets, particularly those operated by NNPC Limited, have reduced pump prices from about ₦1,265 to ₦1,161 per litre.

A few private operators followed suit.

But the majority of independent marketers have maintained pump prices ranging between ₦1,300 and ₦1,355 per litre, effectively ignoring the downward shift in wholesale prices.

The pattern is familiar.

Whenever crude oil prices surge, pump prices increase almost instantly. But when global prices decline, the adjustment process suddenly becomes slow, cautious and selective.

For ordinary Nigerians already struggling with rising living costs, this asymmetry feels deeply unfair.

The Domino Effect on Transport and Daily Life

High fuel prices ripple through the entire economy.

Transport operators quickly adjust fares upward to cover higher petrol costs. Goods become more expensive as logistics costs rise. Small businesses face rising operational expenses.

For commuters and transport workers, the situation is particularly painful.

Motorcycle operators, taxi drivers and commercial transporters often operate on thin margins. When fuel prices remain elevated despite falling crude prices, their income shrinks while passengers struggle to afford rising fares.

The result is a cycle of economic strain felt most intensely by the poorest Nigerians.

Dangote Refinery and the Promise of Local Supply

The emergence of the Dangote Petroleum Refinery was widely expected to stabilise Nigeria’s fuel market by reducing dependence on imports.

According to industry reports, the refinery now supplies a substantial portion of the country’s domestic petrol demand. This development has already helped conserve foreign exchange previously spent importing refined petroleum products.

The refinery has also reduced its gantry prices multiple times within the past year, a move its management describes as part of a commitment to transparency and fairness in response to global market trends.

Yet the benefits of these reductions cannot be fully realised if they fail to reach the final consumer.

Where Regulators Must Step In

This is where regulatory oversight becomes critical.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority must ensure that price adjustments in the supply chain are reflected fairly at retail outlets.

While Nigeria now operates a deregulated fuel market, deregulation does not mean the absence of accountability.

Transparency in pricing, fair competition among marketers and protection of consumers must remain central principles guiding the sector.

Without effective monitoring, market distortions will persist, and public trust in the system will continue to erode.

Global Turbulence Still Matters

The global oil market remains volatile.

Tensions in the Middle East, particularly threats surrounding the Strait of Hormuz, a critical global oil transit route, have already demonstrated how quickly supply disruptions can push prices upward.

The decision by the International Energy Agency to release 400 million barrels of emergency oil reserves underscores the seriousness of the current geopolitical climate.

Saudi Arabia and the United Arab Emirates are also increasing pipeline exports to bypass the strait, highlighting how fragile global energy supply chains remain.

Nigeria, now benefiting from domestic refining capacity, has a rare opportunity to shield its citizens from some of these shocks.

But that protection will mean little if price reductions fail to reach the pump.

The Real Test of Market Reform

Nigeria’s petroleum market is undergoing one of the most significant transformations in its history.

Subsidies have been removed. Domestic refining is expanding. Market pricing is gradually replacing government controls.

But reform must deliver tangible benefits to citizens.

If petrol prices rise quickly but fall slowly, Nigerians will understandably question whether the system truly works in their favour.

Market reforms are judged not by policy announcements but by everyday experience at the fuel pump.

A Moment for Accountability

The reduction in Dangote’s gantry price should have triggered a broader downward adjustment across the retail market.

That it has not happened uniformly reveals lingering inefficiencies and possible opportunism within the supply chain.

For regulators, the task is clear: ensure transparency and fairness.

For marketers, the responsibility is equally clear: pass on legitimate cost reductions to consumers.

And for Nigeria, the broader challenge remains ensuring that the promise of domestic refining translates into real economic relief.

Until that happens, every fuel price reduction announced at the depot will remain only half the story.

HacheNoire:
Brent is already above $100. The price reduction is not feasible and even projected to go higher.

anonimi:
Petrol should never cost more than N70 per litre, says APC

January 19, 2015

The All Progressives Congress (APC) has described as mere tokenism the reduction of petrol price from N97 to N87 per litre, saying the petroleum product ordinarily should sell for N70.

On Sunday, the federal government announced the reduction of petrol price, citing the fall of global crude oil price.

But the APC through Lai Mohammed, its spokesman, on Monday accused the government of making a show out of deceit, saying “a 10.3 per cent slash in the price of petrol was a mere tokenism at a time the price of crude oil has crashed by about 60 per cent”.

It argued that the pump price of a litre of petrol should not be more than 70 Naira, alleging that at N87 per litre, the government was forcing Nigerians to subsidise the massive corruption in the oil sector by N17 for every litre of fuel.

https://www.thecable.ng/petrol-never-cost-n70-per-litre-says-apc/

PlasmaTV:
Lol
APC na big scam sha
Cos why are we buying 1ltr for 1.3k?

And they'll soon spin this to look like a big win.

PlasmaTV:
Lol
APC na big scam sha
Cos why are we buying 1ltr for 1.3k?

And they'll soon spin this to look like a big win.

helinues:
For that 2-3 days oil high price, does it
mean both FG and the marketers don't have oil reserves that can last for at least 3 months hence buying new one at high price and selling high as well?

Deltafirstson:
Although the pump price of fuel was N197 when President Bola Tinubu took over on May 29, 2023, the product now sells for N617 per litre – less than two months after.

In his inaugural address, Tinubu announced that subsidy was gone, fulfilling a promise that all leading presidential candidates made during the campaign.

Nigerians have been lamenting the hardship occasioned by fuel price hike. Amid the lamentation, a video where Tinubu campaigned to slash the price of fuel went into circulation.

Checks by Daily Trust affirmed the authenticity of the video uploaded on the YouTube page of Channels Television.

At his campaign rally in Abeokuta, Ogun State capital, on January 25, 2023, Tinubu spoke on a number of issues, but those of fuel scarcity and naira redesign made the headlines.

However, Tinubu who spoke in Yoruba language, also assured the crowd that though people were saying petrol price would hit N200, it would be reviewed downward under him.

“The great Nigerian youths, the great Nigerian students, the confident Nigerian youths. This is a revolution. This election is a revolution. They are plotting, but they will fail. They said fuel price will increase and reach N200 per litre. Go and relax, we will bring it down,” he had said in the 7th minute of the video.


https://dailytrust.com/breaking-video-of-tinubu-campaigning-to-crash-fuel-



https://www.youtube.com/watch?v=4JH8CC_JdUA

PlasmaTV:
Lol
APC na big scam sha
Cos why are we buying 1ltr for 1.3k?

And they'll soon spin this to look like a big win.

InfoGuru118:
https://verynigerian.com/middle-east-tensions-dangote-price-cut-yet-to-reflect-as-nigerians-buy-pms-at-n1300-per-litre/

adamkkk:
Ona dey jonz us abi... Same fuel wey we enjoy for Jonathan tenure Nd ona protest... E reach ona turn, na international war make fuel wey ona dey process and produce for house to turn to 1400

Memphis357:
Nigerian's petroleum ministry began its troubled times when Muhammadu Buhari appointed himself as Minister. That trajectory continued as the ever incompetent Bola Ahmed Tinubu took over.

Memphis357:
Continue spitting nonsense there.
How much were you buying fuel under Jonathan with fuel subsidy included?

Nackzy:
Nigeria a sick nation, Sarki of Nairaland is chilling with DSS

Kastonkastroll:
Sponsored story everytime. How is selling petrol at 1250 or about that a relief to Nigerians? Anyway sha Nigerians deserve these kinda rippers!

Person go add about 200naira come cut 100naira and they call it relief!

nairalanda1:
?

Buhari was a bad leader , but the issues with the fuel supply date well before 2015

Memphis357:
Continue spitting nonsense there.
How much were you buying fuel under Jonathan with fuel subsidy included?

helinues:
For that 2-3 days oil high price, does it
mean both FG and the marketers don't have oil reserves that can last for at least 3 months hence buying new one at high price and selling high as well?