Nigerians question high fuel prices as crude oil drops to $73 per barrel

• Global crude oil prices have dropped to about $73 per barrel following the US-Iran peace agreement, but petrol prices in Nigeria remain above ₦1,200 per litre, frustrating consumers.

• PETROAN has urged refiners, importers and marketers to reduce fuel prices in line with lower crude oil costs, saying Nigerians should benefit from the decline.

• Many Nigerians and business owners argue that recent fuel price reductions are too small, insisting petrol should return closer to pre-crisis levels of around ₦800–₦900 per litre.

Many Nigerians are expressing frustration over the continued high cost of petrol despite a sharp decline in global crude oil prices.

Crude oil prices fell to around $73 per barrel on Wednesday, their lowest level since tensions between the United States and Iran escalated earlier this year. The decline followed the peace agreement reached between both countries, easing fears of disruptions to global oil supply.

Despite the drop in crude prices, petrol continues to sell for between ₦1,175 and ₦1,300 per litre across several parts of Nigeria, sparking complaints from consumers and business owners who expected pump prices to fall significantly.

Data from international oil market trackers showed that crude oil dropped from about $76.75 per barrel on Tuesday to around $73.50 on Wednesday. The decline extends a downward trend that began after the US-Iran peace deal was announced on June 14.

The development has led many Nigerians to question why fuel prices have remained elevated months after crude oil prices returned close to levels seen before the Middle East crisis.

During the conflict, crude oil prices climbed above $84 per barrel amid fears that the Strait of Hormuz, a critical global shipping route, could be disrupted. In response, fuel prices surged across Nigeria, with petrol rising from around ₦830 per litre to over ₦1,300 per litre in some locations.

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Although the Dangote Refinery recently reduced its ex-depot petrol price by ₦75 per litre, from ₦1,250 to ₦1,175, many consumers argue that the reduction does not reflect the scale of the decline in global oil prices.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has also called on refiners, depot owners and importers to reduce prices further.

Speaking on the issue, PETROAN President Billy Gillis-Harry said operators in the downstream sector should pass on the benefits of lower crude oil prices to consumers.

"The recent decline in global crude oil prices presents an opportunity for stakeholders in the downstream petroleum sector to pass the benefits of lower crude oil costs to Nigerian consumers. Market realities should be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for the public," he said.

He also raised concerns about pricing within the domestic market.

"In some instances, the landing cost of imported petroleum products appears to be lower than the prices offered by domestic refiners. This development is surprising and underscores the need for a more competitive downstream petroleum market that guarantees consumers access to the most affordable products available."

However, officials at the Dangote Refinery argue that fuel prices cannot fall immediately because some of the crude currently being processed was purchased when international prices were much higher during the conflict period.

Industry observers also note that petrol pricing is influenced by more than crude oil prices alone. Exchange rates, logistics costs, refinery operating expenses, taxes, financing costs and existing stock purchased at higher prices can all affect the final pump price.

Still, many Nigerians insist that the reductions announced so far are not enough.

Reacting online, one Nigerian wrote:

"Global crude prices are crashing, but we are celebrating a ₦50 reduction? ₦1,175 to ₦1,125 makes zero difference to the average Nigerian or the cost of transportation. If production costs are down globally, Dangote Refinery needs to pass those real savings down to the masses."

Another said:

"This is ridiculous, petrol should be sold for less than ₦900 at current crude oil prices."

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A third commenter argued that fuel prices should have returned to levels recorded before the conflict.

"The price of crude oil has dropped to $71 dollars in the global market. However, fuel is still being sold at over ₦1,200 per litre in Nigeria. Now that the US/Israeli war against Iran has ended, there is NO justification for selling fuel at exorbitant price. Fuel price should revert to the pre-war rate of ₦800. Nigerians are always being exploited. Enough is enough."

Business owners also complained about the impact of high diesel prices on operations.

One manufacturer recounted how diesel costs more than doubled during the crisis and have yet to fully adjust despite lower crude prices.

"Before the war started on February 28 CRUDE was $70, Then we'd get Diesel for $0.86 (₦1200) per liter here in Nigeria, due to absence of electricity we'd run ₦240,000 Daily, then on March 1, 2026 the major increase hit across the world what seems like a joke suddenly spike price of Diesel to ₦2500 raising daily usage to ₦500,000, Businesses has gone down, alot has happened, many people who run production facility folded, some gave up because they can't meet up.

"Then today 25th June after several months of enduring, Strait has been opened since 14th of June, price of crude is now $72, the empire called Nigeria that runs without regulations is still stuck, we are still buying diesel at higher rate despite the reduction in oil price.

"Can anyone point out the reason to me?"

Another Nigerian expressed disappointment at the latest reduction.

"The reduction from the gantry price is insignificant compared to the crude oil price in the global market. The war in the Middle East has ended and the price should return to the old price which was ₦840 before the war began. What goes up in Nigeria doesn't come down."

Similarly, another reaction read:

"A whole ₦50? Let's not get carried away. Global oil prices have literally crashed, so what is actually stopping a real price drop? Moving from ₦1,175 to ₦1,125 is just PR, not relief."

As crude oil prices continue to trade around the low $70 range, many Nigerians will be watching closely to see whether refiners, importers and fuel marketers eventually pass on the lower costs to consumers through more substantial reductions at the pump.