Fuel prices in Nigeria’s Federal Capital Territory have dropped following the federal government’s suspension of a 15% import duty on petrol and diesel. The price adjustment was seen in several filling stations, including Ranoil and Empire, which reduced their petrol pump prices to N940 and N949 per liter, respectively, down from N955. This reduction translates to a decrease of between N6 and N15 per liter.
The Independent Petroleum Marketers Association of Nigeria attributes the price drop to the government’s decision to suspend the planned import duty. According to the association’s spokesperson, Chinedu Ukadike, the suspension has eased anxieties surrounding the potential increase in fuel prices. Ukadike noted that petrol prices are likely to drop further.
The Nigerian government’s suspension of the 15% import duty is seen as a move to prevent Dangote Refinery from gaining an unfair advantage in the country’s downstream sector, which could have led to higher fuel prices. Earlier this month, the Nigerian National Petroleum Company Limited reduced its fuel pump price to N945 per liter in Abuja.
Currently, most filling stations in Abuja and its environs are selling fuel between N940 and N955 per liter. The ex-depot price of petrol at Dangote Refinery stands at N856 per liter, while other depot owners such as Aiteo, NIPCO, and Pinnacle are selling at N854, N858, and N858 per liter, respectively.
The reduction in fuel prices is expected to have a positive impact on consumers and the economy. With the suspension of the import duty, the government has avoided a potential increase in fuel prices, which would have had far-reaching consequences. As the situation continues to unfold, it is likely that fuel prices will remain a key focus for the government, consumers, and stakeholders in the petroleum industry.
