The Independent Petroleum Marketers Association of Nigeria (IPMAN) has explained that despite the renewal of the naira-for-crude deal between the Nigerian government, Dangote Refinery, and other refiners, Nigerians haven’t seen a drastic fuel price reduction due to forces of demand and supply and the depreciation in foreign exchange rates.
IPMAN spokesperson Chinedu Ukadike explained this amid public concern about why local fuel prices haven’t decreased significantly despite the downturn in global crude oil prices. Brent and WTI crude stood at $65 and $61 per barrel respectively on Tuesday morning.
Global crude prices had dropped from around $67 before the emergence of United States President Donald Trump’s administration’s tariff war with China. The recent agreement on supply cuts by OPEC+ has also triggered a downward slide in crude oil prices.
Nigerians have expressed frustration about not feeling the impact of lower global crude prices on local fuel costs. Abuja resident Nurudeen Abdullahi said he expected petrol to cost no more than N850 per liter given current international prices. Another Nigerian, Evelyn Adebayo, criticized refiners and marketers: “If it were a petrol price hike, they would have implemented it without hesitation.”
Ukadike defended marketers, insisting that local petrol prices haven’t dropped as expected because of market forces and Nigeria’s foreign exchange rate, which stood at N1,604.48 per dollar at the official market. “The forces of demand and supply in the downstream sector, and the cost of foreign exchange also determine the price of crude and its by-product, fuel,” he stated.
Currently, Nigerians buy petrol for between N940 and N975 per liter in Abuja.
Source: Daily Post
