Global crude oil prices have declined to about $70 per barrel, sparking renewed calls for a reduction in the pump price of Premium Motor Spirit (PMS), popularly known as petrol, across Nigeria.
The decline follows a sustained drop in international oil prices amid concerns over slowing global demand, easing geopolitical tensions in some oil-producing regions, and expectations of increased supply from major crude-producing countries.
Despite the fall in crude oil prices, petrol continues to sell for over ₦1,200 per litre in Lagos and nearly ₦1,300 per litre in several other parts of the country, prompting concerns from consumers who expected a corresponding reduction in fuel costs.
Under Nigeria's deregulated downstream petroleum sector, movements in global crude oil prices are expected to influence the cost of refined petroleum products. However, weeks after the decline in crude prices began, motorists and other consumers are yet to experience any significant relief at filling stations.
The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over the situation, noting that while marketers often adjust pump prices upward quickly when crude oil prices rise, reductions appear slower when global prices decline.
The Commission's Executive Vice Chairman and Chief Executive Officer, Tunji Bello, clarified that the FCCPC does not regulate fuel prices but is committed to promoting fair competition and protecting consumers from exploitative practices.
Industry stakeholders, however, maintain that several factors beyond crude oil prices, including exchange rates, logistics costs and market realities, influence the final retail price of petrol in the country.
As global oil prices continue to trend downward, many Nigerians are watching closely to see whether marketers will eventually review petrol prices in line with developments in the international market.
Source: Daily Trust
Tags
Business