BY John Odhe, YENAGOA
Fuel prices in Nigeria are projected to steadily decline towards the N900 to N1000 per litre range.
This downward trajectory follows a recent peace agreement between the United States and Iran that successfully ended months of Middle East hostilities and stabilized global energy markets.
The prolonged geopolitical conflict caused global Brent crude oil prices to surge, climbing well over 100 dollar per barrel at its peak and spiking above 120 per barrel during the height of the crisis.
Because Nigeria’s deregulated downstream sector ties domestic fuel costs to international crude prices and shipping risks, pump prices leaped to around N1,350 per litre in many major cities, including Yenagoa, Bayelsa, Bayelsa State.
At the black market, a lire of Premium Motor Spirit rose to as high as N1,500 in Yenagoa while it revolved around N1,800 and N2,000 in other parts of the State.
With the de-escalation of the Middle East conflict and the subsequent reopening of vital maritime shipping routes like the Strait of Hormuz, global crude benchmarks have cooled significantly.
As international energy markets respond favorably to these diplomatic developments, the price of crude, the fundamental feedstock for refined fuels, has recorded a sharp, downward correction.
This global softening is already yielding direct dividends in Nigeria’s domestic downstream sector.
Following the drop in crude prices, major operators such as the Dangote Petroleum Refinery have slashed their gantry and ex-depot prices slightly.
The latest is N75 reduction in pump price by the Dangote group, dragging a litre of PMS down from N1,250 to N1,175.
These price reductions by key refiners are the primary catalyst triggering nationwide adjustments downward at retail filling stations.
However, a check by our correspondent reveals that the new pump price is yet to be effected in Bayelsa State as most fuel dispensing outlets visited on Monday were still selling the product at N1,315 per litre.
A motorist, Mr. Peter Odhegba called on the State government to set up a petroleum taskforce to compel retailers to revert to the new pump price.
Another end user, Mr. Felix Brakemi lamented that fuel filling outlets in Yenagoa and other parts of the State were in the habit of exploiting consumers by always selling the product higher than approved pump price.
Meanwhile, an official of a retailing outlet in the State capital, who craved anonymity, said “there are factors that contribute to varying prices of PMS from state to state and from one filling station to another.”
He explained that location as well as financial capability were some of the factors, saying “you don’t expect major distributors and wholesalers to sell at the same amount with retailing outlets.”
Looking ahead, industry experts and petroleum marketers expect this downward pricing trend to remain steady, providing much-needed relief to households and businesses.
As current supply pipelines stabilize and the full impact of cheaper domestic refining takes root across Petroleum Retail Outlet Owners Association of Nigeria outlets, Nigerians can anticipate a continued, steady fall in the cost of fuel over the coming weeks.
