Nigeria TV Info 

Why Fuel Price Hasn’t Dropped Below N1,000 Per Litre in Nigeria – Prof. Emeritus Iledare

Professor Emeritus of Petroleum Economics, Wumi Iledare, has explained why the recent decline in global crude oil prices has not translated into petrol selling below N1,000 per litre across Nigeria.

Speaking on developments in the downstream petroleum sector, Iledare said the pump price of petrol is influenced by several economic and market factors beyond the cost of crude oil. According to him, while crude prices have softened, marketers and refiners are still dealing with previously purchased crude and refined products acquired at much higher prices, making immediate price reductions unrealistic.

He noted that Nigeria now operates a deregulated petroleum market, where fuel prices are determined by market realities rather than government-fixed pricing. This means exchange rate fluctuations, logistics costs, financing expenses, storage, distribution, and operational costs continue to significantly affect the final pump price.

The energy expert also stressed that local refining alone cannot automatically guarantee cheaper petrol. He argued that even with increased domestic refining capacity, global oil prices, foreign exchange volatility, and other market dynamics will continue to influence fuel prices unless broader economic stability is achieved.

Iledare urged Nigerians to understand that petroleum pricing under a liberalised market reflects prevailing economic conditions rather than political decisions. He added that sustained reductions in crude prices, exchange rate stability, and lower operating costs would be necessary before petrol could consistently sell below N1,000 per litre nationwide.