BY John Odhe
Fuel pump prices are expected to drop in the days ahead, driven by a sharp decline in global crude oil costs and easing geopolitical tensions.
International prices of the essential product have fallen from over $120 to roughly $72 per barrel, a development that has already triggered initial wholesale price cuts from the Dangote Refinery.
Local pump prices are expected to follow suit very soon. Many stations currently sell fuel between N1,191 and N1,300 per litre across the country because they are clearing older, high-cost stock.
However, fuel dispensing outlets in Yenagoa, Bayelsa State, still sell fuel between N1,250 and N1,300 per litre, giving same excuse of clearing old stock.
A manager of one of the fuel dispensing outlets in Yenagoa, who refused to be named, said “when these expensive reserves are sold, healthy industry competition and new, cheaper wholesale supplies will push prices down to the N1,000 range.”
Meanwhile, an end user of the product, Mr. Nelson Odiabara, described the high cost of pump price of fuel despite reduction in depot price as wickedness on the part of retailers.
“Whenever there in increase in pump price, the retailers don’t wait until they finish their cheaper old stock before increasing pump price. In fact, they can even increase pump price based on rumour but when it comes to reduction, you begin to hear excuses of old stock for many weeks and even when they reduce, they hardly go back to the original price,” he queried.
Odiabara called on the government to step in to ensure that cost savings reach the public.
Already, the Federal Competition and Consumer Protection Commission (FCCPC) and the petroleum ministry have warned marketers to lower retail costs without delay.
This strong regulatory pressure guarantees that lower global oil prices will quickly reflect at local pumps.
