According to PETROAN, Brent crude recently declined to about $77–$78 per barrel, with projections indicating it could trade between $75 and $82 per barrel in the coming week
KaNo —
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on stakeholders in the downstream petroleum sector to reduce the prices of petroleum products in line with the recent decline in global crude oil prices, citing easing geopolitical tensions and improving supply conditions in the international market.
The association made the call as crude oil prices continued to trend downward following a ceasefire agreement between the United States and Iran, a development that has raised expectations of increased oil exports through the Strait of Hormuz and improved global supply stability.
In a statement issued on Friday by its National Public Relations Officer, Dr Joseph Obele, PETROAN’s National President, Billy Gillis-Harry, said the drop in global crude prices presented an opportunity for refiners, depot owners and importers to pass on cost reductions to Nigerian consumers.
“The recent decline in global crude oil prices presents an opportunity for stakeholders in the downstream petroleum sector to pass the benefits of lower crude oil costs to Nigerian consumers.
Market realities should be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for the public,” Gillis-Harry stated.
Similarly, West Texas Intermediate crude is expected to hover between $72 and $79 per barrel.
The association attributed the downward pressure on prices to a combination of factors, including the ongoing implementation of the US-Iran peace agreement, increased crude exports from the Middle East, and concerns over weakening global demand.
Despite the favourable global outlook, PETROAN expressed concern about pricing trends within Nigeria’s domestic petroleum market.
Gillis-Harry noted that in some cases, the landing cost of imported petroleum products appeared to be lower than the prices offered by domestic refiners, raising questions about pricing efficiency and competitiveness in the sector.
“In some instances, the landing cost of imported petroleum products appears to be lower than the prices offered by domestic refiners.
This development is surprising and underscores the need for a more competitive downstream petroleum market that guarantees consumers access to the most affordable products available,” he said.
To address this imbalance, the association called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to sustain the issuance of import licences to qualified marketers.
According to PETROAN, increased competition among suppliers would help moderate prices, discourage monopolistic tendencies, and ensure consistent product availability nationwide.
“Increased competition among suppliers would help moderate prices, discourage monopolistic tendencies, and ensure a steady supply of petroleum products across the country,” the statement added.
Gillis-Harry emphasised that competition remains one of the most effective mechanisms for driving efficiency and lowering costs in any market-driven sector.
The association also urged the Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, to facilitate discussions with two Chinese firms reportedly interested in operating Nigeria’s Port Harcourt and Warri refineries.
PETROAN said reviving the refineries under private-sector-driven arrangements would significantly improve domestic refining capacity and reduce reliance on imports.
“If these refineries are successfully revived and operated as private-sector-driven facilities, petroleum product prices are expected to decline further due to improved efficiency and increased domestic refining capacity,” Gillis-Harry said.
He added that the resumption of operations at the refineries under competent private management would enhance supply stability, promote healthy competition, and ultimately result in more affordable petroleum products for Nigerians.
PETROAN further noted that sustained moderation in crude oil prices, combined with stable exchange rates and manageable refining costs, should translate into lower petrol prices, thereby providing relief for households and businesses grappling with high energy costs.
The association reiterated its commitment to advocating for a transparent and consumer-friendly downstream petroleum sector, stressing that fair pricing, energy security and economic sustainability should remain central to policy and operational decisions.
Meanwhile, PETROAN has pointed to recent developments in the diesel market as evidence that competition can drive down prices.
The association disclosed that increased competition forced the Dangote Petroleum Refinery to reduce its ex-depot price of Automotive Gas Oil (AGO), commonly known as diesel, by N200 per litre.
Data from Petroleumprice.ng indicated that diesel prices dropped from N1,800 to N1,600 per litre following the entry of imported products into the Nigerian market.
Dr Obele described the price cut as a clear demonstration that competitive market dynamics—not monopolistic control which offer the most effective pathway to affordable fuel pricing.
Over the weekend, several of the vessels reportedly arrived, and today the refinery reduced the price of AGO, commonly known as diesel, by N200. The reduction is from N1,800 to N1,600,” he said.
The development comes amid an ongoing legal dispute involving the refinery, the Attorney General of the Federation, and Nigerian National Petroleum Company Limited over the continued issuance of fuel import licences in Nigeria.
The refinery had approached the Federal High Court in Lagos to challenge the decision of the NMDPRA to grant import permits to certain marketers and oil trading firms, arguing that such actions could undermine domestic refining efforts.
However, PETROAN maintained that opening up the market to multiple players is essential for price stability and supply security.
The association insisted that restricting imports could create artificial scarcity and drive prices upward, ultimately harming consumers.
Industry analysts have also noted that Nigeria’s downstream sector is undergoing a critical transition following the deregulation of petrol pricing, with market forces increasingly determining costs.
In this context, PETROAN’s call underscores the need for transparency, competition and regulatory balance to ensure that consumers benefit from favourable global trends.
As global crude oil prices continue to fluctuate in response to geopolitical developments and demand shifts, stakeholders in Nigeria’s petroleum sector face growing pressure to align domestic pricing with international realities.
