Nigerians Fume, Demand Immediate Fuel Price Reduction Amidst Global Oil Slump
Nigerians are demanding lower petrol prices amidst falling crude oil rates, questioning the discrepancy between current prices (N1,250-N1,360) and pre-war crude levels. While Dangote Refinery has made some reductions and analysts explain the pricing lag due to factors like inventory costs and exchange rates, President Tinubu's administration remains silent on calls for further price drops.
Nigerians are exerting significant pressure on the Dangote Refinery, the Nigerian National Petroleum Company Limited (NNPC), and fuel marketers to reduce petrol pump prices below N1,000 per litre. This demand comes despite current rates ranging between N1,250 and N1,360, even as crude oil prices have fallen to around $72-$73 per barrel, and even as low as $69-$71 per barrel for West Texas Intermediate and Brent crude, respectively. Consumers highlight the perceived inconsistency, questioning why prices remain high when crude is trading at pre-war levels, especially since the refinery and marketers were quick to raise prices when crude escalated to as high as $120 per barrel during a period of heightened Middle East conflict.
Many Nigerians express the sentiment that the urgency applied to raising pump prices should also be evident in lowering them. Before February 28, 2026, when the Iran-United States-Israel conflict escalated, petrol prices in Nigeria hovered around N800-N900 per litre, subsequently rising to N1,400 per litre before settling in the N1,241-N1,305 range in Abuja and its environs. The public views current PMS prices above N1,200 a litre, with crude at only $73 per barrel, as illogical and unsupported by current realities, suggesting that fuel prices should ideally be below N900 by now.
The Dangote Refinery has recently demonstrated some responsiveness, having purchased two cargoes of UAE crude, marking a pivot from African and US grades to heavier crude baskets. Furthermore, the refinery announced two separate reductions in its gantry petrol price. Initially, it dropped its price by N75 per litre from N1,250 to N1,175, triggering a nationwide drop in pump prices. Subsequently, another N50 per litre reduction was announced, bringing its gantry petrol price to N1,125 per litre. However, these adjustments have not fully met the public's clamour for prices to fall below the N1,000 per litre threshold, which was the rate before the Middle East crisis.
Energy analysts, however, offer a defence for the continuous high pump prices, explaining that the apparent disconnect is not price gouging but rather a structural lag driven by economic factors. Mr. Kelvin Emmanuel, Managing Partner at The Energy Consulting Practice, attributes this to replacement costs, foreign exchange fluctuations, and existing inventory already purchased at higher prices. He elaborates that inventories are acquired at