Fuel Prices in Nigeria Expected to Decline as Global Crude Oil Slips
Nigeria’s domestic fuel prices are poised for a reduction following a sharp drop in global crude oil prices, driven by the reopening of the Strait of Hormuz. As of Saturday morning, benchmark crude prices fell significantly: West Texas Intermediate (WTI) dropped 11 percent to $83.85 per barrel, while Brent crude declined 9 percent to $90.38 per barrel, down from around $100 per barrel.
The decline comes after Iran announced the full reopening of the strategic waterway, which had been partially blocked, easing concerns over global oil supply. The development is already being felt in Nigeria’s downstream petroleum sector, where depot marketers have begun adjusting prices downward.
At fuel depots, petrol now sells between N1,205 and N1,206 per litreā€”slightly above the Dangote Refinery’s price of N1,200 per litre. This pricing pattern was observed among marketers such as Aiteo, Bono, and NIPCO. Diesel prices at depots in Lagos, including Menj and Duport, stood at N1,775 per litre.
Market analysts say the drop in crude oil prices has triggered a wave of panic selling among depot operators. However, retail pump prices have yet to reflect these changes. As of the latest reports, petrol remains 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 the market shift, stating that further reductions are likely if the downward trend in crude prices persists. “We expect fuel prices to drop in the coming days if crude oil prices continue to decline,” he told Media Talk Africa.
The anticipated price adjustments could provide some relief to Nigerian consumers and businesses, particularly as lower fuel costs often translate into reduced transportation and production expenses across sectors.
