Marketers Announce Fresh Drop in Petrol Price as Cost of Crude Oil Changes Again

• Petroleum product marketers have warned that the decline in crude oil prices could lead to a significant drop in petrol prices, with the introduction of a new pricing structure
• Despite the fall in crude oil prices, marketers, including NNPC and the Dangote Refinery, have kept petrol prices above N900 per litre due to old stock and importation challenges
• Filling stations have adjusted their prices, with some reducing petrol rates in response to competition, but major price adjustments are not expected immediately

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Petroleum product marketers have warned that the decline in crude oil prices could lead to a significant drop in the price of Premium Motor Spirit (petrol).

According to the Petroleum Products Retail Outlet Owners Association of Nigeria, a new pricing structure may be implemented starting Monday, June 29, 2025, in response to the decline in crude oil prices.

Despite the drop in the price of crude oil, the Nigerian National Petroleum Company Limited, the Dangote Petroleum Refinery, and other gasoline marketers have managed to keep petrol prices above N900 per litre, according to The Punch.

Over the weekend, the price of gasoline remained within the range it had reached when oil prices recently rose to about $80 per barrel, during the intensification of the confrontation between Iran and Israel.

New crude oil prices

As of Sunday, June 29, 2025, Brent crude was trading at about $67 per barrel, while West Texas Intermediate (WTI) was trading at $65 per barrel. Both had earlier sold for as low as $65 and $63 on Saturday, June 28, 2025.

However, at the end of the previous week, Oilprice.com reported that WTI was trading at $73 per barrel and Brent oil was trading at over $77.

Despite this decline in oil prices, Nigerian fuel importers and manufacturers did not lower petrol prices to reflect the shift. PETROAN's national publicity Secretary, Joseph Obele, told The Punch that a new price regime was anticipated.

He indicated that in the week commencing June 29, the Dangote Refinery, NNPC, and several depots might implement a reduction in their pricing.

"We anticipate there will be a new price regime from tomorrow. The new prices will come from everyone; from Dangote, NNPC, and the rest. Let us wait till tomorrow, but there will be a new price regime," Obele told The PUNCH on Sunday.

Old stock still available

In an interview, the spokesman of the Crude Oil Refinery Owners Association of Nigeria, Eche Idoko, said some marketers still had old stocks to sell. According to Idoko, the price would start to reduce once crude oil prices stabilise.

“Well, it’s not rocket science. The price of crude oil moved up immediately, but people were getting stocks, and until the stocks go down, the price cannot change. Let’s give it like a week or two, and we’ll see the price drop,” he said.

Idoko also explained that there were other issues with Nigeria's petrol prices. He attributed the high cost of gasoline to a scarcity of oil.

"The pricing mechanisms in Nigeria have not allowed us to fully benefit from the fall in petroleum product prices."

“Again, remember that we have mentioned that the local refineries are sourcing crude from outside the country. Dangote is buying from the United States. So, any potential gains from local refining are lost due to crude importation.".

Filling stations adjust petrol prices

The price of petrol at filling stations in the capital of Ogun state, Abeokuta, was N935 per litre on Sunday. These retailers offer goods from the Dangote refinery, such as MRS Oil.

Some filling stations, such as SGR, Akiavic, Sedabuk, and others, along the Mowe/Ibafo axis of the Lagos-Ibadan Expressway, supplied petrol between N915 and N925, which was less expensive than Dangote's partners. On Sunday, petrol was sold at N925 at the NNPC retail location in Ibafo.

In order to compete with the Dangote refinery, whose ex-depot pricing as of Sunday was still N880, a few importers and depot owners changed their prices.

Rainoil reduced its price from N900 to N880, A.A. Rano reduced its price to N877, and NIPCO lowered its price from N895 to N870, which was the same price as Aiteo's on Sunday, according to Petroleumprice.ng.

Nigerians oppose FG's 5% fuel charge

Earlier, Legit.ng reported that transporters, farmers, human rights advocates, and civil society organisations nationwide faulted the proposed implementation of the five per cent users’ charge on petrol and diesel prices, stating that it could cause more hardship and protests nationwide.

The House of Representatives Ad Hoc Committee probing the non-remittance of the five per cent user charge on petroleum products to the Federal Roads Maintenance Agency (FERMA) called for the charge’s implementation as enshrined in the FERMA Act 2007.

The Act states that five per cent of the pump price of petrol and diesel purchased by Nigerians will be added to road maintenance, with 40% remitted to FERMA and 60% to state road maintenance agencies.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng