The easing of crude oil prices in the international market has raised expectations of a significant drop in petrol pump prices across retail stations in Nigeria; however, consumers groan over what they consider a “token” adjustment in prices by marketers.
Crude oil had surged to a peak of $120 per barrel following geopolitical tensions in the Middle East that disrupted global supply after the Strait of Hormuz closed, sending petrol pump prices to between ₦1,300 and ₦1,500 per litre, while diesel sold as high as ₦2,000 between April and May.
After a three-month spike, oil prices dropped by almost $50 following the resumption of oil exports with the reopening of the Strait of Hormuz, as the United States and Iran reached an interim peace agreement to ease tensions in the Gulf region.
Brent, the international crude benchmark, sold at $72.85, while the U.S. West Texas Intermediate (WTI) stood at $70.33 per barrel on Monday, June 29, signaling a return to prewar levels. Before the war started in late February 2026, Brent crude traded at $72.48 per barrel.
Despite the oil price drop and renewed competition among downstream marketers, petrol prices have remained high, leaving consumers questioning why cheaper crude has not translated into relief at the pump.
In Nigeria, where petrol deregulation was expected to align domestic prices with international market realities, many consumers anticipated that filling stations would quickly reflect the global trend.
Instead, petrol prices have remained largely unchanged across most cities, with only marginal reductions by some independent marketers.
Dangote Refinery has adjusted its ex-depot price of petrol twice since global prices started dropping. At first, the refinery cut its gantry from ₦1,250 to ₦1,175 and subsequently to ₦1,125 per litre.
According to data from the Major Energies Marketers Association of Nigeria (MEMAN), petrol import landing cost has stood at ₦1,019 per litre as of June 25, 2026, below that of Dangote Refinery’s ex-depot price.
Checks by Pinnacle Daily reveal that the petrol pump price is still between ₦1,200 and ₦1,350 depending on the location.
For many Nigerians already battling high inflation, rising transportation costs, and weakening purchasing power, the disconnect has become another symbol of the country’s economic paradox.
Reacting to the development, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, called on petroleum marketers to reduce pump prices of petrol and other petroleum products to reflect the decline in global crude oil prices and ease pressure on domestic consumers.
The minister, who spoke during the 2026 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum in Abuja, noted that Nigeria’s deregulated petroleum market allows prices to respond to market forces, but warned that operators should not use the policy as an opportunity to rip off Nigerian consumers.
Lokpobiri said the deal between the United States and Iran had led to de-escalation of hostilities in the Middle East, which caused oil prices to slump, creating room for downward adjustments in fuel prices. He expressed concern that many marketers had yet to pass the benefit of the decline on to consumers.
FCCPC Probes High Fuel Prices, Threatens Sanctions
Meanwhile, the Federal Competition and Consumer Protection Commission (FCCPC) has threatened to sanction local refiners, depot operators, marketers and retail outlet owners if investigations reveal evidence of consumer exploitation in the downstream petroleum sector.
In a statement released on Sunday and signed by FCCPC Director, Corporate Affairs, Ondaje Ijagwu, the agency said preliminary findings from its ongoing surveillance of the downstream market revealed “token reductions in prices that are not commensurate with the steep fall in crude prices in the global market.”
FCCPC Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, clarified that the Commission does not regulate or approve petroleum prices in a deregulated downstream market but has a responsibility under the Federal Competition and Consumer Protection Act, 2018, to promote competitive markets, prevent anti-competitive conduct and protect consumers from unfair, deceptive and exploitative business practices.
Bello expressed concern that while marketers are quick to raise pump prices whenever crude prices rise, they fail to adjust downwards when it drops to allow consumers to enjoy price relief.
“We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is curious that it is taking forever for consumers to benefit significantly when crude prices fall. Competitive markets must work fairly in both directions.”
The Commission observed that petrol prices averaged between ₦800 and ₦900 in February, when crude oil prices were hovering between $68 and $73 per barrel.
It stated that although some local refiners fixed prices between ₦1,025 and ₦1,075 as their gantry prices, PMS is still sold at an average of ₦1,200 across the country.
FCCPC said that while it acknowledges that domestic prices are influenced by a range of commercial and market factors, including refining costs, foreign exchange movements, logistics, financing and distribution expenses, it expects that the crude oil price drop in the international market should have led to significantly lower pump prices in Nigeria.
While stating that market liberalisation does not remove the obligation of businesses to comply with principles of fair competition and consumers’ right to fair treatment, Bello warned that “Where credible evidence indicates conduct that undermines competition, exploits Consumers or otherwise contravenes the Federal Competition and Consumer Protection Act, the Commission will investigate and take appropriate enforcement action.”
He encouraged consumers to report suspected anti-competitive practices, misleading pricing and other unfair market behaviour through the Commission’s complaint channels.
Why Cheaper Crude Has Not Lowered Pump Prices
Industry experts argue that crude oil represents only one component of the final retail price of petrol.
Dr Patrick Ejumedia, Head of Research, Sterling Asset Management and Trustees Limited, argued that falling crude oil prices do not guarantee cheaper fuel in the domestic market.
Ejumedia said the pump price is a combination of the cost of crude oil and other costs such as transportation, logistics, storage, and marketing.
He insisted that while crude oil prices are falling, other cost components do not adjust immediately, thereby keeping pump prices up.
“It is possible for crude oil prices to be going down, but other costs are going up. For instance, transportation and logistics among others,” he stated.
He added that the delay in bringing down pump prices stems from marketers waiting to sell off old stock (purchased at a higher cost) and buying new ones at the reduced rate.
Chief Economist and Partner at SPM Professional, Dr Paul Alaje, said price reduction will not happen so quickly because “prices are sticky,” coupled with supply challenges.
Speaking in an interview on Channels Television, Alaje said what could lead to an immediate drastic decline in the pump price of fuel is adequate supply, which offers consumers multiple channels to buy the products.
While noting that Dangote Refinery remains the dominant supplier of petroleum products for now, Alaje called for more local refineries to boost domestic supply.
He maintained that having multiple sources of supply is the only sustainable way to engender strong competition in the downstream petroleum market.
Highlighting the challenges in Nigeria’s oil and gas sector, he said the country ought to be producing not less than 2.3 million barrels of crude per day to be able to adequately supply to local refineries and have excess for exports and earn more foreign exchange.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X