Crude Price Drop Fails to Lower Petrol Costs in Nigeria

The recent decline in global crude oil prices has not translated into lower petrol prices in Nigeria, where petrol continues to sell around N1,200 per liter, compared to N800-N900 during the crisis. The Federal Competition and Consumer Protection Commission (FCCPC) acknowledges public concerns regarding pricing in a deregulated market.

Tunji Bello, the FCCPC's Executive Vice Chairman and Chief Executive Officer, noted that the commission does not regulate prices in a deregulated market but investigates anti-competitive practices. Meanwhile, Taiwo Oyedele, Minister of Finance and Economy, stated that the government is engaging with the market to ensure that changes in global crude prices are transparently reflected in domestic pump prices.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicates that local refining has increased, with domestic refineries supplying 87.6% of petrol, yet imports remain significant, bridging supply gaps. The complexities of the market, including the timing of crude purchases and inventory losses, further complicate the pricing situation.