Oil Prices Drop to $72, Petrol Prices Remain High in Nigeria

Oil prices have dropped to $72 per barrel, a level not seen since the outbreak of hostilities involving Iran earlier this year. Despite this significant decline in global oil prices, petrol prices in Nigeria continue to remain high, ranging from N1,250 to N1,360 per liter, depending on location.

This situation has reignited calls for a downward adjustment in fuel prices, as crude oil constitutes the largest component of petrol product costs. The decline in oil prices follows improved conditions around the Strait of Hormuz, where vessel movement has gradually resumed.

On June 17, the U.S. and Iran signed a memorandum of understanding aimed at negotiating Tehran's nuclear program, which has led to a partial lifting of sanctions on Iranian oil exports. In a separate development, Baker Hughes has secured a long-term service agreement with Anoh Gas Process Company for lifecycle support services and engineering advisory services for critical equipment in Imo State.