Nigerians may soon see a reduction in petrol and diesel prices as global crude oil prices continue to fall, dropping below $60 per barrel for the first time in months. However, marketers have cautioned that any price cut at the pump may not be immediate, as the market waits to determine the stability of the new pricing level.
As of Monday, Brent crude traded at $59.80 per barrel, while the U.S. benchmark, West Texas Intermediate (WTI), hovered around $56.71, according to data from oilprice.com. Nigeria’s local blends, Brass River and Qua Iboe, were priced at $64.60, falling more than $10 short of the $75 benchmark used in the Federal Government’s 2025 budget projections — raising concerns about the feasibility of the fiscal plan.
Speaking with The PUNCH, Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said product prices may fall if current crude levels remain stable over the next two weeks.
“The price of petrol may come down, but not immediately,” Ukadike stated. “Speculators will assess the reasons behind the drop. If it’s driven by artificial or short-term factors, prices may not be adjusted quickly.”
Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), explained that existing crude stockpiles bought at higher prices are still in the supply chain, which could delay any significant price reductions.
“Crude already purchased before the price drop is still being refined,” he said. “The system needs time to adjust, and changes in pump prices won’t happen at the same speed as global market shifts.”
Global crude markets dipped further after OPEC+ announced accelerated output increases over the weekend. Reuters reported that the group plans to boost production by 411,000 barrels per day (bpd) in June, raising the total additional supply between April and June to 960,000 bpd, a partial reversal of cuts imposed since 2022.
Market analysts say the production surge, coupled with an uncertain demand outlook, is fueling downward pressure on prices. Brent crude fell by 8.3% and WTI by 7.5% last week alone.
Meanwhile, Nigerians, who have faced rising fuel prices amid currency volatility and subsidy removal, are hopeful that the global oil slump could finally bring relief at the pumps.
Despite this expectation, marketers and industry stakeholders emphasize that systemic delays and cost recovery measures could slow the impact on domestic pricing — even as the country navigates a tightening fiscal space due to reduced oil revenues.
