Global crude oil prices fell to about $70 per barrel on Thursday, renewing expectations that petrol pump prices in Nigeria could soon be reduced.

The decline saw Brent crude, the international oil benchmark, drop from about $71 per barrel at Wednesday’s close to around $70, extending a downward trend driven by weaker global demand, easing geopolitical tensions in some oil-producing regions and expectations of increased supply.

Despite the sustained fall in crude prices, the retail price of Premium Motor Spirit (PMS), popularly known as petrol, has remained unchanged across Nigeria.

Under Nigeria’s deregulated downstream petroleum market, fluctuations in global crude oil prices are expected to influence the cost of refined petroleum products, prompting consumers to question why local pump prices have yet to reflect the latest decline.

The Federal Government, through the Ministry of Petroleum and the Federal Competition and Consumer Protection Commission (FCCPC), had earlier called for reductions in pump prices following the significant drop in international crude oil prices.

Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr. Tunji Bello, said the commission does not fix or approve petroleum prices in the country’s deregulated downstream sector.

According to Bello, the commission’s responsibility under the Federal Competition and Consumer Protection Act, 2018, is to promote competition, prevent anti-competitive practices and protect consumers from unfair, deceptive and exploitative business conduct.

He expressed concern that while marketers often increase petrol prices almost immediately whenever global crude prices rise, consumers have yet to benefit from similar reductions following the recent decline in oil prices.

Bello said competitive markets should respond fairly to both increases and decreases in international crude prices.

Meanwhile, petroleum marketers have pushed back against threats of sanctions over pump prices and have warned of possible industrial action.

As of Thursday, petrol continued to sell for over ₦1,200 per litre in Lagos and nearly ₦1,300 per litre in many other parts of the country, despite crude oil prices falling below levels recorded before recent geopolitical tensions.

(Photo Credit: ThisDay Live)