Global crude oil prices continued their downward trend on Wednesday, but Nigerian motorists are yet to enjoy corresponding relief at the pumps, with petrol still selling above N1,000 per litre in many parts of the country despite the significant decline in international oil prices.
Brent crude, the global oil benchmark, dropped to $71.21 per barrel, while the United States benchmark, West Texas Intermediate (WTI), fell to $68.16, its lowest level since the outbreak of the US-Iran conflict on February 28.
The decline represents a sharp fall from the peak of about $120 per barrel recorded during the height of the Middle East tensions. However, retail petrol prices in Nigeria have only eased slightly, fuelling concerns among consumers and government regulators.
Checks by our correspondent on Wednesday showed that two Nigerian National Petroleum Company Limited (NNPC) retail outlets in the Ibafo area of Ogun State sold petrol at N1,210 per litre, while several other filling stations along the Lagos-Ibadan Expressway dispensed the product at an average price of N1,160 per litre.
The current pump prices remain significantly higher than the roughly N800 per litre Nigerians paid before the US-Iran conflict, even though crude oil prices have largely returned to pre-war levels.
FG warns against consumer exploitation
The Federal Government has expressed concern over the slow pace of petrol price reductions, warning marketers and refiners against taking advantage of consumers under the deregulated market regime.
Speaking in Abuja on Monday during the opening of the 2026 General Counsel and Legal Advisers Forum organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, acknowledged widespread public dissatisfaction over the disconnect between falling crude oil prices and retail fuel costs.
According to the minister, while the era of government-fixed petrol prices has ended, deregulation does not exempt industry regulators from protecting consumers against unfair market practices.
His comments came after the Federal Competition and Consumer Protection Commission (FCCPC) raised concerns on Sunday over what it described as possible consumer exploitation in the downstream petroleum sector following the failure of fuel prices to decline significantly despite the steep drop in global crude oil prices.
Marketers reject any attempt at price control
Responding to the government's position, fuel marketers insisted they would resist any move to impose petrol price controls, arguing that such a step would undermine the principles of a deregulated market.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, dismissed allegations of profiteering, maintaining that many marketers are already struggling with losses following repeated price reductions introduced by the Dangote Petroleum Refinery.
"Marketers will shut down if they try somehow to enforce price control. We are going to shut down our stations nationwide. You can’t be regulating a deregulated market. You can’t tell me how much to sell my product without trying to know how much I bought it."
Ukadike argued that marketers purchase products at different prices and should be allowed to determine retail prices based on their operating costs and market realities.
Other countries cut fuel prices
While Nigeria continues to grapple with high petrol prices, several oil-producing countries have already adjusted domestic fuel prices in response to lower crude oil prices.
In Brazil, the Chief Executive Officer of the state-owned oil company Petrobras, Magda Chambriard, announced a reduction in diesel prices sold to distributors to reflect the decline in Brent crude prices. The adjustment coincides with the withdrawal of a temporary government diesel subsidy introduced during the Iran conflict.
Brazil's Finance Minister, Dario Durigan, also disclosed that other fuel subsidies are being reviewed for gradual phase-out as oil prices continue to ease following reduced tensions in the Middle East.
The improvement in global oil markets follows an interim agreement signed last month between Iran and the United States aimed at ending hostilities and reopening the Strait of Hormuz, a strategic shipping route through which about 20 per cent of global oil supplies previously passed before the conflict. Both countries are also exploring negotiations towards a permanent peace agreement.
Saudi Arabia has also begun adjusting prices. According to Reuters, state-owned energy giant Saudi Aramco reduced its July official selling prices for liquefied petroleum gas, cutting propane prices by $180 per metric tonne to $580 per tonne and butane prices by $220 per metric tonne to $600 per tonne.
Similarly, Algeria's Sonatrach lowered LPG prices by between 2 and 10 per cent, citing improved global supply conditions.
Despite these developments and the sharp retreat in crude oil prices, Nigerians continue to wait for meaningful reductions in petrol prices, with many consumers questioning why the benefits of lower global oil prices have yet to reflect at filling stations across the country.