A wave of petrol price reductions is sweeping across Africa, primarily driven by a sustained decline in global crude oil prices. This decrease is attributed to factors such as U.S. tariff hikes and increased production from oil-producing countries. While some nations are experiencing relief at the pump, others, like Nigeria, face a different reality.

Falling Prices Across the Continent

Several African countries have announced cuts in fuel prices, reflecting the global trend. Mali, Morocco, and South Africa are among those that have implemented price reductions, providing some economic respite to their citizens.

In Ivory Coast, fuel prices have experienced their first drop in five years. Unleaded petrol is now priced at 855 CFA francs per litre, while diesel is at 700 CFA, offering much-needed relief to consumers and businesses alike.

Nigeria's Position in West Africa

Despite the global decline and price drops in other African nations, Nigeria's situation is unique. According to data from Globalpetrolprices.com, Nigeria maintains one of the cheapest pump prices in West Africa and ranks 13th globally. The average petrol price in Nigeria is approximately $0.60 per litre, around N940, which is significantly lower than the global average of N1,922 per litre. Even at a hypothetical N1,000 per litre, the price remains below $1, making it relatively affordable compared to other nations.

However, neighboring West African countries face considerably higher petrol prices. In Liberia, a litre sells for $0.87 (N1,365), while in Ghana, it costs N1,611. Consumers in Benin Republic and Togo pay N1,817 and N1,778 per litre, respectively. Cape Verde sees prices rise to N2,089, and Guinea tops the chart at N2,170 per litre, followed closely by Burkina Faso (N2,223), Ivory Coast (N2,172), Senegal (N2,589), and Mali (N2,235).

Global Comparison

Globally, Libya offers the cheapest petrol at just N42 per litre, followed by Iran (N45) and Venezuela (N54). Angola, Egypt, and Kuwait also rank among the most affordable, with prices ranging between N512 and N533. On the other end of the spectrum, Hong Kong has the most expensive petrol at N5,410 per litre, followed by Iceland (N3,655), Denmark (N3,375), the Netherlands (N3,268), and Israel (N3,128).

Potential Future Reductions in Nigeria

The Crude Oil Refinery Owners Association of Nigeria (CORAN) has suggested that petrol prices could potentially drop to as low as N350 per litre at filling stations. Eche Idoko, Publicity Secretary of CORAN, explained that with declining crude prices, there is no justifiable reason for Nigerians to continue paying as high as N900 per litre.

Conclusion

While a significant portion of Africa is experiencing a welcome reduction in fuel prices due to global market dynamics, Nigeria's situation remains relatively stable, with prices still among the lowest in the region. The potential for further price drops in Nigeria, as suggested by CORAN, could offer additional economic relief to its citizens.