Refiners Says Nigerians Can’t Get Cheaper Fuel Despite Crude Price Drop

The Crude Oil Refinery Owners Association of Nigeria (CORAN) has provided reasons why Nigerians are not seeing reduced costs for Premium Motor Spirit (PMS), even though there has been a notable decline in worldwide crude oil prices.

CORAN attributes the persistence of high local fuel prices to the halt in Naira-for-crude transactions, profiteering by intermediaries, and the escalating rates of foreign exchange.

Addressing the sharp drop in global crude prices, Eche Idoko, CORAN’s spokesperson, highlighted that these issues are still driving up petrol costs within Nigeria.

Over the weekend, crude oil prices plummeted, with Brent reaching a low of $64 per barrel and WTI dropping to $59.7. Analysts link this fall to the economic fallout from US President Trump’s tariff policies and an unexpected supply reduction announced by OPEC+.

Yet, despite this global decrease in prices, the cost of fuel in Nigeria has kept climbing.

“The price will continue to rise because these middlemen are the elements that want to see that local refining is not sustained,” Idoko explained. “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.”

Just last week, prominent marketers such as MRS (a collaborator with Dangote Refinery), the Nigerian National Petroleum Company Limited (NNPCL), and others raised their petrol pump prices.

At present, petrol is retailing between N900 and N975 per litre across various parts of the nation.

This price surge follows Dangote Refinery’s announcement on March 19, 2025, to pause petrol sales in Naira, a decision prompted by an impasse in the Naira-for-crude agreement between the refinery and the Nigerian government via the NNPCL.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli