The global price of crude oil has dropped to about $70 per barrel and Nigerians are hopeful again that the price of petrol in the country will be reviewed again shortly.
The fall in petroleum prices persisted today morning as the benchmark Brent crude fell to $70 from $71 per barrel it finished yesterday, Daily Trust writes.
But despite the huge crash in international oil prices, the pump price of Premium Motor Spirit (PMS), popularly known as petrol, has stayed unchanged in Nigeria, despite pressure from Nigerians. Fluid Management
Crude prices have been falling on fears that global demand is decreasing, that geopolitical tensions are easing in some oil-producing areas and that big suppliers may increase supply.
Brent crude, the global standard, has fallen from prior highs this year to roughly $70 a barrel.
The liberalisation of the downstream petroleum industry is likely to lead to the price of refined petroleum products being influenced by variations in global crude prices.
This has led consumers to ask why they have not seen the latest drop in the international market reflected in local pump prices after weeks.
The Federal Government, through the Ministry of Petroleum and the Federal Competition and Consumer Protection Commission (FCCPC), has requested a reduction in pump prices following a sharp fall in crude prices. Fluid Handling
The Executive Vice Chairman and Chief Executive Officer of the Commission, Mr. Tunji Bello, said FCCPC does not regulate or approve petroleum pricing in the country’s deregulated downstream sector.
“Let me be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market. “It is our responsibility under the Federal Competition and Consumer Protection Act, 2018, to promote competitive markets, prevent anti-competitive conduct and protect consumers from unfair, deceptive and exploitative business practices,” Bello stated.
He said that petroleum marketers are quick to hike pump prices nearly instantly anytime the global crude oil prices go up but customers are not enjoying commensurate discounts despite the recent drop in crude prices.
“We are concerned that while dealers often react fast by raising pump prices whenever crude prices rise, it is curious that it takes forever for consumers to benefit significantly when crude prices fall. ‘Competitive markets have to work equitably both ways,’ he told.
However, the marketers have threatened to go on strike which has led to a pushback from marketers over the prospect of sanctions.
The price of oil has fallen to $70 as of the time of this report which is below the pre-war price, but a litre of PMS is still being sold at over N1,200 in Lagos and N1,300 in other parts of the country.
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