However, petrol prices remain significantly higher than levels recorded before the international market disruption earlier in the year, with an average price of between ₦1,405 and ₦1,420 per litre in Abuja and ₦1,325 to ₦1,370 per litre in Lagos.
Petrol prices were compared to those recorded on February 27, before the international market disruption, when Brent crude futures closed at $72.48 per barrel and petrol sold for between ₦839 and ₦925 per litre in Lagos and Abuja. The FCCPC notes that the current prices are significantly higher than the pre-disruption levels.
Petroleum marketers have attributed the increase in domestic fuel prices over the past eight months to international crude oil volatility and disruptions linked to the conflict in the Middle East, including the blockade of the Strait of Hormuz. The strategic shipping route handles at least 25% of global oil traffic, making disruptions a significant factor in international energy supply and pricing.
The FCCPC has cautioned fuel sellers that a sustained reduction in crude oil prices should ease wholesale petroleum costs and eventually lower retail prices. The Commission expects refiners and marketers to pass any resulting savings to consumers without unnecessary delays. It also acknowledged the pressure that raised fuel prices have placed on households and businesses, particularly through transportation, power generation, and other operating expenses.
A sustained decline in international crude oil prices could create room for lower petrol and diesel prices, potentially easing transportation expenses, household energy bills, and business operating costs. However, changes in crude prices do not automatically translate into immediate reductions at filling stations. Domestic pump prices also reflect refining and import costs, exchange rates, logistics, distribution expenses, and other market conditions.
The FCCPC will continue working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant agencies to monitor wholesale and retail prices. It warned that it would take appropriate action within its statutory mandate if investigations establish anti-competitive conduct or unfair market practices that prevent consumers from benefiting from lower costs.
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