Despite a significant drop in global crude oil prices to $100 per barrel, Nigerian oil marketers have maintained high petrol prices at N1,300 per litre and above, sparking allegations of consumer exploitation.
Investigations across Lagos and Abuja have revealed that retail oil marketers are maintaining high Premium Motor Spirit (PMS) prices, ranging from N1,300 to over N1,371 per litre, despite a sharp decline in global crude oil prices from $130 to $100 per barrel. While the international dip followed expectations of increased supply from diplomatic engagements, domestic checks showed that outlets like MRS, NIPCO, and AYM Shafa have yet to adjust their pumps downward. In the Federal Capital Territory, NNPC Retail stations were seen selling at N1,361 per litre, while the Dangote Petroleum Refinery maintained a price of N1,285 per litre, leaving consumers burdened by high costs that have surged over 50 percent in recent weeks.
The disparity between falling production costs and stagnant retail prices has triggered calls for regulatory oversight to prevent the exploitation of Nigerians. Olatide Jeremiah, CEO of Petroleumprice.ng, urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) to act, noting that marketers are historically quick to hike prices but slow to lower them. Conversely, some industry stakeholders argue that the current deregulated environment means prices must be dictated by supply and demand rather than immediate shifts in the global market.
Addressing the friction between market dynamics and consumer protection, key voices in the sector have offered differing perspectives on the way forward. Highlighting the need for intervention, Olatide Jeremiah stated, “The oil price has been dropping in recent days, yet Nigerians have not seen a corresponding reduction in pump prices. This has worsened instability in the downstream sector. The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, and the Federal Competition and Consumer Protection Commission, FCCPC, need to protect consumers from exploitation, as marketers are quick to increase prices but slow to reduce them, thereby making abnormal profits at the expense of Nigerians.” However, Billy Gillis-Harry, President of PETROAN, countered this by saying, “This is a deregulated market, and the forces of demand and supply should be allowed to guide operations.”
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