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Why Cheap Crude Oil Isn’t Cutting Petrol Prices in Nigeria – IPMAN Reveals
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has clarified that the continuation of the Nigerian government’s naira-for-crude oil swap arrangement with Dangote Refinery and other local refiners has not led to a significant reduction in petrol prices due to market forces and the depreciating naira.....KINDLY READ THE FULL STORY HERE▶
IPMAN’s spokesperson Chinedu Ukadike on tuesday explained that while global crude prices have dropped to around $65 per barrel—down from previous highs—this has not translated into relief at the pumps for Nigerian consumers. On the same day, Brent and WTI crude traded at $65 and $61 per barrel, respectively.
The recent decline in oil prices has been linked to geopolitical events, including a tariff standoff between former U.S. President Donald Trump and China, and production cut agreements by OPEC+. However, despite temporary stability following a global tariff pause (excluding China), Nigerians are yet to benefit from the downward trend in crude prices.
Residents have expressed frustration over the stagnant local petrol prices. Abuja resident Nurudeen Abdullahi stated that, given current international oil benchmarks, domestic fuel prices should not exceed ₦850 per litre. Another citizen, Evelyn Adebayo, criticized marketers for quickly raising prices during global hikes but being reluctant to reduce them when prices fall.
Although Dangote Refinery recently announced a ₦10 cut in its ex-depot petrol rate, the impact on final pump prices remains minimal. This reduction was aligned with the government’s ongoing naira-for-crude policy.
Ukadike emphasized that independent marketers are not at fault. He pointed out that two main factors—market demand and supply dynamics, and the exchange rate—are chiefly responsible for the sustained high fuel prices. As of Tuesday, the naira traded at ₦1,604.48 to the dollar in the official market.
“These factors significantly influence the final cost of refined petroleum products. Given the present realities, the current petrol price remains competitive and reasonable,” Ukadike said.
Currently, petrol sells for between ₦940 and ₦975 per litre in Abuja, despite the global drop in oil prices.
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