Why Fuel Price Has Not Dropped – IPMAN

Independent Petroleum Marketers Association of Nigeria (IPMAN) has clarified that the fuel price may not drop as Nigerians expect due to some factors.

Naija News reported that the Federal Government renewed the crude-for-naira deals with local refineries.

The implementation Committee of the Crude-for-Naira deal, chaired by Minister of Finance, Wale Edun, at its meeting last Tuesday, stated that the initiative would remain in effect as long as it aligned with public interest.

“The Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.

“The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives,” he said.

In response, Dangote Refinery reduced its petrol price to ₦865 per liter, marking a ₦15 decrease from the previous price of ₦880 per liter sold by the facility.

Despite these measures and the current drop in global crude oil prices, Nigerians currently buy petrol between ₦940 and ₦975 in Abuja. Also, in other regions of the country, except Lagos and South West states, Nigerians buy fuel not less than ₦900.

Reacting, IPMAN’s spokesman, Chinedu Ukadike, explained that market forces were responsible. He also stated that the foreign exchange rate, which stood at ₦1,604.48 to $1 as of Tuesday, was another factor affecting the drop in fuel price.

“The forces of demand and supply in the downstream sector, and the cost of foreign exchange also determine the price of crude and its by-product, fuel.

“The current price of petrol is competitive and fair enough for Nigerians owing to the two factors of forces of demand and supply and FX rate,” he told Daily Post, on Tuesday.