Business
Marketers retain high petrol prices as crude oil crashes to pre-war level
By Obas Esiedesa & Ediri Ejoh
Oil marketers across Nigeria have continued to sell Premium Motor Spirit (PMS), popularly known as petrol, at elevated prices despite a sharp decline in global crude oil prices to levels recorded before the outbreak of the US-Iran conflict.
Brent crude, the international benchmark against which Nigeria’s oil is priced, fell to about $72.48 per barrel on Thursday, down from nearly $120 per barrel at the height of the conflict, raising expectations of further reductions in petrol prices.
However, checks by Vanguard in Abuja showed that filling stations largely retained pump prices introduced during the period of soaring crude prices, leaving consumers burdened with high transportation and energy costs.
Before the conflict began on February 28, petrol sold for between N740 and N930 per litre in Lagos and Abuja. As crude oil prices surged amid fears of supply disruptions through the Strait of Hormuz, pump prices rose sharply, reaching as high as N1,403 per litre in parts of the Federal Capital Territory.
A survey of filling stations around Abuja’s Central Area on Thursday showed that the Nigerian National Petroleum Company Limited (NNPC Ltd.) sold petrol at N1,260 per litre, while TotalEnergies dispensed at N1,305 per litre. Conoil sold at N1,320 per litre, while AA Rano and AYM Shafa sold at N1,280 per litre. MRS outlets offered the lowest price among the stations surveyed at N1,240 per litre.
In Lagos, retailers also continued to maintain pump prices at elevated levels with petrol stations retaining old rates. Market survey showed that Peridot sold at N1,205 per litre with MRS dispensing at N1,205 per, Fatgbems at N1,206 per litre and Technoil at N1,200 per litre.
The development comes despite a recent reduction in ex-depot prices by Dangote Petroleum Refinery, which supplies a significant portion of the country’s petrol requirements.
Two weeks ago, the refinery cut its ex-gantry price by N75 per litre, or six per cent, reducing the price from N1,250 per litre to N1,175 per litre following a decline in crude oil prices to about $82.78 per barrel. However, the refinery has yet to announce another reduction despite crude prices falling by an additional $10 per barrel since then.
Industry analyst Henry Adigun of AHA Consultancy said that the sustained decline in crude oil prices should ordinarily translate into lower ex-depot and retail petrol prices, especially as supply concerns that drove the earlier increases have eased.
“It is not always straightforward with marketers who seek to maximise profits at every situation’’, Adigun stated.
Brent crude futures for August delivery fell by $1.06, or 1.44 per cent, to $72.68 per barrel on Thursday, while U.S. West Texas Intermediate crude declined by 76 cents, or 1.08 per cent, to $69.58 per barrel.
The latest decline reflects growing confidence among traders that oil shipments through the Strait of Hormuz will continue uninterrupted following the ceasefire agreement between the United States, Israel and Iran.
According to market reports, crude prices fell from $76.75 per barrel on Tuesday to $73.50 per barrel on Wednesday as concerns over disruptions to global oil supplies eased.
The decline has also been supported by expectations of increased Middle Eastern oil supplies and the prospect of higher Iranian exports following the easing of some U.S. sanctions.
Shipping activity through the Strait of Hormuz, through which about one-fifth of global oil supplies pass, has also improved following measures by Omani authorities and international maritime agencies to facilitate tanker movements.
Meanwhile, Dangote Petroleum Refinery yesterday announced a further reduction in the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, from N1,175 to N1,125 per litre.
This latest adjustment reflects the refinery’s ongoing commitment to ensuring price stability, improving affordability, and supporting Nigeria’s energy security objectives. The price review underscores Dangote Refinery’s responsiveness to prevailing market conditions and its efforts to pass on cost efficiencies to downstream partners and consumers.
Dangote Refinery remains focused on its broader mission of contributing to economic growth, enhancing fuel availability, and fostering a more competitive and sustainable petroleum sector in Nigeria.