Why Nigerians are far from cheaper fuel despite drop in crude oil prices

Tuesday, April 8, 2025 - The Crude Oil Refinery Owners Association of Nigeria (CORAN) has explained why Nigerians are not experiencing lower prices for Premium Motor Spirit (PMS), despite a significant drop in global crude oil prices.

According to CORAN, the suspension of Naira-for-crude deals, profiteering by middlemen, and the rising foreign exchange rates are key factors keeping fuel prices high locally.

In response to the global crash in crude prices, CORAN’s spokesperson, Eche Idoko, emphasized that these challenges continue to impact the cost of petrol in Nigeria.

Crude oil prices fell sharply over the weekend, with Brent trading as low as $64 per barrel and WTI at $59.7. The decline has been attributed to the economic effects of US President Trump’s tariff policy and a surprise supply cut announcement by OPEC+.

However, despite the global price drop, fuel prices in Nigeria have continued to rise.

“The price will continue to rise because these middlemen are the elements that want to see that local refining is not sustained,” Idoko said. “You have the FX effects, the logistics of shipping in refined petroleum products, and then the effect of the middlemen. All these contribute to high costs of petroleum products in Nigeria.”

Last week, major marketers, including MRS (a partner of Dangote Refinery), the Nigerian National Petroleum Company Limited (NNPCL), and others, increased their petrol pump prices.

Currently, petrol is being sold between N900 and N975 per litre across different locations in the country.

The hike in price follows the Dangote Refinery’s decision on March 19, 2025, to suspend petrol sales in Naira. This move came after a deadlock in the Naira-for-crude deal between the company and the Nigerian government through the NNPCL.