The Nigerian Association of Crude Oil Refinery Owners (Coran) explains why Nigerians, despite the sharp drop in global crude oil prices, have not experienced lower premium automotive spirit (PMS) prices.
According to Coran, Naira criminal transactions, the suspension of middlemen’s profits and rising exchange rates are key factors that keep fuel prices higher locally.
Coran spokesman Eche Idoko stressed that these challenges continue to affect the cost of Nigerian gasoline in response to the collapse of global crude oil prices.
Crude oil prices fell sharply over the weekend, with Brent trading as low as $64 a barrel and WTI selling for $59.7. The decline is attributed to the economic impact of U.S. President Trump’s tariff policy and the surprise supply cuts announced by OPEC+.
But despite global prices falling, fuel prices in Nigeria continue to rise.
“The price will continue to rise because these middlemen are the elements that want to see local refining,” Idoko said. “You have the FX effect, the transport logistics in refined petroleum products, and then the middleman effects. All of this contributes to the high cost of Nigerian petroleum products.”
Last week, key marketers, including Mrs. (a partner of Dangote refinery), Nigeria National Petroleum Corporation Limited (NNPCL), etc., raised their gasoline pump prices.
Currently, gasoline is between N900 and N975 per liter in different locations in the country.
The price increase comes after the Dangote refinery’s decision to suspend Naira’s gasoline sales on March 19, 2025. The move is a deadlock in the Naira-For-For transactions conducted through the NNPCL between the company and the Nigerian government.
