Global crude oil prices have fallen to around $70 per barrel, raising expectations that Nigerians could soon see lower petrol prices. However, despite the sustained decline in international oil prices, the retail price of Premium Motor Spirit (PMS) remains above ₦1,200 per litre in many parts of the country.Brent crude, the global oil benchmark, slipped to approximately $70 per barrel after closing at about $71 the previous day. The latest decline has been linked to weaker global demand, easing geopolitical tensions in some oil-producing regions, and expectations of increased oil supply from major producers.Since Nigeria operates a deregulated downstream petroleum market, movements in global crude prices are expected to influence the cost of imported refined petroleum products. This has prompted many consumers to question why petrol prices have not fallen despite weeks of lower crude oil prices.The Federal Government, through the Ministry of Petroleum, has previously encouraged marketers to reflect changes in international oil prices in local pump prices. Similarly, the Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over the slow response to declining crude prices.FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, clarified that the commission does not fix or approve fuel prices under the deregulated market. He explained that the agency’s responsibility is to promote fair competition, prevent anti-competitive practices, and protect consumers from exploitative business conduct.According to Bello, petroleum marketers often adjust pump prices upward almost immediately whenever crude oil prices increase. However, the recent decline in crude prices has not translated into similar relief for consumers.He stressed that a truly competitive market should allow prices to move in both directions, ensuring that consumers benefit when global market conditions improve.Petroleum marketers, however, have resisted calls for an immediate reduction in pump prices. Some industry operators argue that other factors, including foreign exchange costs, logistics, and existing supply arrangements, continue to influence the retail price of petrol. Some marketers have also pushed back against suggestions of sanctions, warning that such actions could trigger industrial action.As of the latest market reports, petrol continues to sell for more than ₦1,200 per litre in Lagos, while prices in several other states remain close to ₦1,300 per litre, despite crude oil trading at levels lower than those recorded before recent geopolitical disruptions.The situation has renewed public debate over whether the benefits of falling global oil prices are reaching Nigerian consumers under the country’s deregulated petroleum market.
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