Global oil prices have dropped to levels seen before the US-Iran conflict, with Brent crude falling to $73.14 per barrel and West Texas Intermediate to $69.85. The decline follows reduced geopolitical tensions after the US-Iran peace agreement and improved confidence in global oil supply stability. Before the conflict, a litre of premium motor spirit (PMS) in Nigeria sold for between N770 and N800, but currently retails for between N1,200 and N1,300 depending on location. Despite the nearly 40% drop in crude prices, Nigerian pump prices have only decreased by N75 since the peak.
The ex-depot price of petrol remains at N1,180 per litre, according to a fuel marketer who argued it should not exceed N700. Oil and gas analyst Dr. Ayodele Oni explained that falling crude prices do not automatically translate to lower pump prices in Nigeria due to the deregulated market. He noted that the exchange rate plays a more significant role because landed petrol costs are dollar-denominated. According to Oni, the naira's stability is now as critical as crude prices in determining whether consumers benefit.
Market analysts suggest that if current oil prices and exchange rate conditions persist, pressure may grow on fuel marketers to lower pump prices. However, no immediate reduction has been observed across major filling stations in Lagos, Abuja, and Port Harcourt. Consumers continue to pay elevated prices despite the global easing of oil costs. The disconnect between international crude trends and domestic retail prices has sparked renewed debate over how fuel pricing works in Nigeria.
The same market forces that allow marketers to charge N1,180 per litre when crude drops to $73 are the ones they blame for high prices when crude rises. Dr. Ayodele Oni admits the naira's value now matters more than crude prices in determining pump costs. Nigerians paying N1,300 for petrol are effectively subsidizing dollar-denominated import costs despite lower global oil prices. The system works exactly as designed — just not for them.
💡 NaijaBuzz Take is AI-assisted editorial opinion, not established fact. Full disclaimer →
