As global crude oil prices continue to fall, many Nigerians are asking the question: Why are petrol prices not dropping at the same pace?
That concern brought regulators, marketers and government officials to the table in Abuja to seek a fairer pricing system that protects both businesses and consumers.
For commercial drivers, traders and millions of households, every naira added to the pump price of petrol means higher transport fares, more expensive food and increased pressure on already stretched family budgets.
Although international crude oil prices have eased in recent months, many Nigerians say the relief has yet to reach filling stations.
That concern formed the basis of a stakeholders’ meeting on cost-reflective pricing of petroleum products.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri told marketers that while several factors determine petrol prices, temporary gains from old, higher-cost inventories should not be used to keep pump prices artificially high after replacement costs have fallen.
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority(NMDPRA), Rabiu Umar said the decline in cooking gas prices demonstrates that market adjustments are possible.
He urged industry players to work with regulators to address the gap between lower replacement costs and retail pump prices.
Key Industry players here believe that the meeting will result in a balanced pricing framework that keeps petroleum businesses sustainable while ensuring Nigerians benefit more quickly whenever global market conditions drive fuel costs down.
(Editor: Anoyoyo Ogiagboviogie)
