By Opeyemi Adelakun
Petroleum marketers have ruled out an immediate reduction in the pump price of Premium Motor Spirit (PMS), despite the continued decline in global crude oil prices to about $70 per barrel.
The resistance comes amid growing calls from consumers and the Federal Government for lower petrol prices following the sustained drop in international crude oil prices.
Brent crude, the global benchmark, slipped to around $70 per barrel after closing at $71 the previous day, driven by weaker global demand, easing geopolitical tensions and expectations of increased oil supply.
Despite the decline, petrol continues to sell for over N1,200 per litre in Lagos and about N1,300 per litre in several other parts of the country.
A source among major fuel marketers said retail prices could only fall if depot or gantry prices dropped significantly.
“You cannot ask marketers to reduce prices when the gantry price is still above N1,000 per litre. Any reduction must begin from the supply level,” the source said.
Earlier, the Federal Competition and Consumer Protection Commission (FCCPC) expressed concern that marketers often increase pump prices immediately whenever crude oil prices rise but delay passing the benefits to consumers when prices fall.
The commission, however, clarified that it does not regulate fuel prices in Nigeria’s deregulated downstream petroleum sector, noting that its role is to promote fair competition and protect consumers from exploitative practices.
Industry stakeholders have expressed differing views on the matter.
Professor Wumi Iledare, an energy economist, warned against government interference in fuel pricing, arguing that executive price directives would undermine the Petroleum Industry Act and the deregulated market.
He noted that fuel prices typically respond faster to increases in crude oil prices than to declines, describing the trend as “asymmetrical price transmission.”
Similarly, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, urged the Federal Government to exercise caution, saying any intervention should be evidence-based and balance consumer interests with the sustainability of petroleum marketers.
However, energy analyst Rasheed Adeleke supported regulatory oversight, insisting that marketers should not exploit consumers under the guise of deregulation.
He argued that regulatory authorities have the legal responsibility to intervene whenever market practices become unfair or detrimental to the public.
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