Lagos – Pump prices across Nigeria are still trading above N1,000 per litre even as global crude benchmarks fall to around $70 per barrel, with marketers and refiners blaming expensive legacy inventories, Naira devaluation, and logistics bottlenecks.
Industry players say both the Dangote Refinery and independent importers bought feedstock and refined products when crude was between $95 and $124 per barrel. Until that high-cost stock is cleared, retail prices cannot reflect the current dip in global prices, they argue.
“Refineries must first clear these costlier inventories before retail prices can reflect the current $70pb benchmark,” one downstream operator explained.
Exchange rate pressure is compounding the problem. Because petroleum products are priced in US dollars, the weak Naira keeps landing costs elevated even when crude drops. A marketer who bought cargoes at N1,500/$ will not recoup costs if he sells at a rate that assumes N1,000/$.
Distribution adds another layer. Moving petrol from depots in Lagos and Port Harcourt to stations nationwide involves significant transport and bridging costs, which are built into the final pump price.
Regulators press for adjustment
The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, is now demanding that marketers revise pump prices to mirror the global decline. Officials confirmed that some major suppliers have started cutting ex-depot prices in response.
But the Independent Petroleum Marketers Association of Nigeria says members cannot slash prices immediately without incurring losses. “We must first sell off existing high-cost stock to avoid financial ruin,” an IPMAN executive said.
The standoff leaves consumers paying N1,000+ at many stations despite the 25–40% fall in crude since its peak.
Analysts expect a gradual correction once depots receive new cargoes bought at lower crude prices and with less FX pressure. For now, marketers advise consumers to track ongoing adjustments via platforms like http://Petroleumprice.ng for real-time depot and retail updates.
The NMDPRA says it will continue monitoring compliance and engaging stakeholders to ensure price movements eventually reflect global realities without destabilising the supply chain.
