Nigeria’s petrol price has decreased, with filling stations in Abuja now selling fuel at between N940 and N945 per litre, down from N945 and N955. The drop in price comes after the federal government announced the suspension of its planned 15% import duty on petrol and diesel to encourage local production.

The Independent Petroleum Marketers Association of Nigeria attributes the price reduction to the policy reversal, stating that the proposed 15% import tariff would have led to indirect inflation and an increase in petroleum pump prices. According to the association’s spokesperson, Chinedu Ukadike, the suspension of the import duty will allow the forces of demand and supply to control the market, leading to healthier competition and compliance with the Petroleum Industry Act.

However, Dangote Refinery disagrees, attributing the price drop to its recent reduction in gantry price. The refinery claims that the decrease in petrol price is not linked to the suspension of the 15% import duty, which would have given it a competitive advantage in the market. The federal government’s decision to suspend the import duty is expected to benefit consumers, as it would have resulted in higher petrol prices for Nigerians.

The price reduction is a significant development in Nigeria’s petroleum industry, which has been grappling with high fuel prices and supply chain disruptions. The suspension of the import duty is seen as a move to encourage local production and reduce the country’s reliance on imported fuel. As the industry continues to evolve, it remains to be seen how the price reduction will impact the market and consumers in the long term.

The decrease in petrol price is also attributed to the decline in crude oil prices in the international market. With the global economy experiencing fluctuations, the price of crude oil has decreased, leading to a reduction in the cost of production for refineries. This decrease is expected to be passed on to consumers, resulting in lower fuel prices.

In the coming days, the Nigerian government is expected to monitor the situation and make adjustments as necessary to ensure that the benefits of the price reduction are felt by consumers. The government’s decision to suspend the import duty is a step in the right direction, and it is hoped that it will lead to a more stable and competitive petroleum industry in Nigeria.