Fuel prices in Nigeria are expected to decline following a significant drop in global crude oil prices, which has been influenced by the reopening of the Strait of Hormuz. As of Saturday morning, benchmark crude prices experienced notable decreases: West Texas Intermediate (WTI) fell by 11 percent to $83.85 per barrel, while Brent crude decreased by 9 percent to $90.38 per barrel, down from approximately $100 per barrel. This decline follows Iran’s announcement regarding the full reopening of the strategic waterway, which had previously been partially blocked, alleviating concerns about global oil supply.
The impact of this development is already being observed in Nigeria’s downstream petroleum sector, where depot marketers have started to adjust prices downward. Currently, petrol is being sold at fuel depots for between N1,205 and N1,206 per litre, which is slightly above the price set by the Dangote Refinery at N1,200 per litre. This pricing trend has been noted among various marketers, including Aiteo, Bono, and NIPCO. Meanwhile, diesel prices at depots in Lagos, such as Menj and Duport, are reported to be at N1,775 per litre.
Market analysts indicate that the decline in crude oil prices has prompted a wave of panic selling among depot operators. However, retail pump prices have not yet adjusted to reflect these changes. As of the latest reports, petrol continues to be priced between N1,290 and N1,333 per litre, while diesel ranges from N1,850 to N1,900 per litre. Abubakar Maigandi, President of the Independent Petroleum Marketers Association, confirmed this market shift and suggested that further reductions are likely if the downward trend in crude prices continues. “We expect fuel prices to drop in the coming days if crude oil prices continue to decline,” he stated in an interview with Media Talk Africa.
The anticipated price adjustments could offer some relief to Nigerian consumers and businesses, as lower fuel costs typically lead to reduced transportation and production expenses across various sectors.
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