Nigeria Faces Rising Petrol Prices Despite Global Oil Rate Decline: Marketers Slow to Adjust
Despite a notable decline in global oil prices, petrol marketers in Nigeria have been slow to adjust their pump prices, causing frustration among consumers. Currently, petrol is being sold at prices ranging from N1,190 to N1,210 per litre, even as international crude oil rates have dropped significantly.
Market Response to Global Oil Price Changes
The recent decrease in global oil prices has not yet translated into lower petrol prices at the pump. Following a marginal reduction in the ex-depot price of Premium Motor Spirit (PMS) by Dangote Petroleum Refinery, many marketers have yet to align their prices accordingly. This situation has raised concerns among Nigerians, who have been grappling with high energy and transportation costs for the past three and a half months, largely due to the ongoing conflict in the Middle East.
Consumers had hoped for a return to the pre-crisis petrol price of N800 per litre, which was observed when global crude oil prices averaged between $70.89 and $66.96 per barrel in February 2026. As of late June 2026, crude oil prices have fallen to approximately $69.67 to $73.74 per barrel, following the resumption of normal shipping through the Strait of Hormuz after recent peace developments between the U.S. and Iran.
Price Adjustments by Major Players
While some petrol stations in Lagos have begun to lower their prices, the reductions have not been substantial enough to reflect the decrease in global oil prices. In Abuja, the Nigerian National Petroleum Corporation (NNPC) has cut its petrol price from N1,260 to N1,210 per litre, marking its second price reduction within a week.
A market survey revealed that most filling stations in Lagos and Ogun states are selling petrol between N1,190 and N2,210 per litre, depending on the location and the specific retail outlet. Notable petrol stations include NNPC, Mrs, ConOil, TotalEnergies, Ardova, Mobil, Rain Oil, Matrix, and FatGbems.
On June 25, 2026, Dangote Petroleum Refinery announced a reduction in its ex-depot price of PMS by N50 per litre, attributing this change to the easing of tensions in the Middle East and the corresponding decline in global energy prices. The gantry loading price was adjusted from N1,175 to N1,125 per litre, while the coastal supply price decreased from N1,495,215 to N1,428,165 per metric tonne.
Market Dynamics and Future Expectations
As of the announcement, Brent crude had fallen by 1.67% to $72.51 per barrel, while West Texas Intermediate (WTI) was trading at $69.41 per barrel, down 1.32%. Analysts expect that these changes will exert further downward pressure on petrol prices across Nigeria’s downstream market, with hopes that marketers will eventually align with the new refinery rates.
Adetunji Oyebanji, former Chairman of the Major Energies Marketers Association of Nigeria, provided insight into the relationship between crude and pump prices. He noted that the crude currently held by refiners was purchased at higher prices, which means it will take time for cheaper crude to reach the refineries. Additionally, he indicated that it would take another week for the new crude to undergo the refining process.
Oyebanji explained that when crude prices rise, refiners quickly adjust their prices to prepare for future purchases. Conversely, when crude prices decline, they may take longer to adjust because they are still processing higher-priced inventories. He acknowledged the potential for sharp practices but emphasized that the market would eventually correct itself as lower-priced products enter the market.
Implications for Consumers and the Economy
Marketers are currently liquidating expensive fuel and crude inventories acquired during the peak of the global energy crisis. Retailers are also setting prices to cover replacement and distribution costs. As a major oil exporter, Nigeria benefits significantly when prices exceed the national budget. Estimates suggest that Nigeria’s gross oil earnings experienced a windfall of N5.13 trillion ($4 billion) within just 52 days of the conflict.
Analyst Segun Olonode described this situation as a “mixed blessing.” While Nigeria’s revenue and foreign reserves have increased during the crisis, it has also led to severe domestic inflation, impacting the purchasing power of consumers.
Source: www.zawya.com
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Published on 2026-06-29 15:43:00 • By the Editorial Desk
