Falling Crude Prices Test Nigeria’s Fuel Market as PETROAN Pushes for Price Cuts

BY Àkànní Olúwaségún Michael

A decline in global crude oil prices is placing renewed attention on fuel pricing dynamics in Nigeria’s deregulated downstream petroleum sector, with the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) calling for refiners, importers and depot operators to reduce petroleum product prices.

The association argues that recent movements in the international oil market have created conditions for lower fuel prices and should translate into relief for consumers and businesses facing high energy costs.

Brent crude has traded around $77-$78 per barrel in recent days, following signs of easing tensions in the Middle East and expectations of improved oil supply flows through the Strait of Hormuz.

The softer market outlook has fuelled expectations that petroleum product prices could come under pressure in the coming weeks.

Speaking on the development, PETROAN National President, Billy Gillis-Harry, said fuel pricing should reflect prevailing market conditions rather than remain disconnected from movements in global crude oil markets.

The association also pointed to reports suggesting that some imported petroleum products are arriving in Nigeria at costs below prices offered by local refiners, a development that could reshape competition within the downstream sector.

PETROAN subsequently urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue issuing import licences to qualified marketers, maintaining that competition remains critical to market efficiency, supply security and price moderation.

The association maintained that competition remains critical to ensuring market efficiency, product availability and price moderation in the deregulated downstream petroleum sector.

It stated that unrestricted participation by qualified importers would help prevent supply disruptions and create a more competitive pricing environment.

It also called on the Nigerian National Petroleum Company Limited to engage investors interested in operating the Port Harcourt and Warri refineries, arguing that increased refining capacity could strengthen competition and improve product availability.

According to the association, attracting private investment into the facilities would boost domestic refining capacity, strengthen competition and improve the availability of petroleum products across the country.