₦airaland Forum

Global crude oil prices have declined to the $70 per barrel mark, raising fresh expectations among Nigerians that domestic petrol prices could soon be reviewed downward.

The downward slide in crude prices continued on Thursday morning as the benchmark Brent crude slipped to $70 from $71 per barrel it closed on Wednesday.

However, despite the significant drop in international oil prices, the pump price of Premium Motor Spirit (PMS) otherwise known as petrol has remained unchanged in Nigeria despite pressure from Nigerians.

The decline in crude prices comes amid concerns over slowing global demand, easing geopolitical tensions in some oil-producing regions and expectations of increased supply from major producers.

Brent crude, the international benchmark, has retreated from higher levels recorded earlier in the year to around $70 per barrel.

With the deregulation of the downstream petroleum market, movements in global crude prices are expected to influence the cost of refined petroleum products.

This has prompted consumers to question why local pump prices have yet to reflect the latest decline in the international market weeks after.

The federal government through the Ministry of Petroleum and the Federal Competition and Consumer Protection Commission (FCCPC) had called for reduction in pump prices in response to the drastic drop in crude prices.

The Executive Vice Chairman and Chief Executive Officer of the Commission, Mr. Tunji Bello, clarified that the FCCPC does not regulate or approve petroleum prices in Nigeria’s deregulated downstream sector.

“To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market. Our responsibility under the Federal Competition and Consumer Protection Act, 2018, is to promote competitive markets, prevent anti-competitive conduct, and protect consumers from unfair, deceptive and exploitative business practices,” Bello said.

He added that while petroleum marketers often increase pump prices almost immediately whenever global crude oil prices rise, consumers are yet to enjoy corresponding reductions despite the recent decline in crude prices.

“We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is curious that it is taking forever for consumers to benefit significantly when crude prices fall. Competitive markets must work fairly in both directions,” he stated.

However, there has been a pushback from marketers over the threat of sanctions even as the marketers threaten to embark on strike.

Even as the crude price slipped to $70 as of press time, even lower than the pre-war level, a litre of PMS is still sold at over N1,200 in Lagos and almost N1,300 in the other parts of the country.

slivertongue:
Greed is the middle name of Nigerian business elites

slivertongue:
Greed is the middle name of Nigerian business elites

slivertongue:
Greed is the middle name of Nigerian business elites

shortgun:
So why is the government not intervening

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/

nairalanda1:
So, you want businesses to go into losses that may threaten their existence because you want cheap stuff?

Real life doesn't work that way.

It takes some time before the crude hits the refinery at the lower prices.....

cr7lomo:
See them...these are the people that have sworn to use greed to destroy Nigeria...see them defending their illegality

nairalanda1:
Prices are falling though.
Two weeks ago, in the FCT, it was 1380 per liter
Sunday before last it was 1280 per liter
As at this monday, it was 1245 per liter.

It's going to take some time, but I think the fuel price will keep dropping

P.S...For everyone, they got to sell off their old stock so that there is money to, among other things, pay salaries of ordinary nigerians like you and me who work for the marketers and the refineries we have here.

PS.2

If you want a working country, vote for a leader who will improve productivity, someone like...OBI.

You got 8 days to register for your PVC

obeegee:
FCCPC suddenly cant bite

slivertongue:
Greed is the middle name of Nigerian business elites

slivertongue:
Greed is the middle name of Nigerian business elites