Nigerian National Petroleum Company Limited has however cut its pump price of petrol in the Federal Capital Territory to N910 a litre at some stations.Â
That is significantly lower than before at N945 and will come as relief to motorists and companies, which have been hit by high fuel prices over the last few months.
This dip in price, which was recorded over the weekend at some NNPC gas stations in Abuja, is by N35. At other independent fuel stations elsewhere, for example along Airport Road and Lugbe, petrol goes for about N935 per liter, as a general trend in pump prices around the city.
The spike is tracking the recent slide in world crude prices. Another principal world indicator, Brent crude, also declined significantly to around $68.30 per barrel as of June 4. The decline in crude prices has produced a ripple effect in the worldwide energy market, influencing refinery pricing and retail adjustment.
Curiously, the Dangote Petroleum Refinery also trailed behind to the same international cues by lowering its ex-depot (wholesale) petrol price to N840 a litre from July 1. This follows in a general bid at fuel price balancing in Nigeria’s deregulated petroleum industry, especially as a reaction to market forces and changes in import behavior.
Against the backdrop of the volatility of petrol prices and intransigent supply and distribution efficiency issues, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been interested in hosting a very crucial industry conference. The July 23 and 24 summit aims to get on board key stakeholders in the oil and gas value chain, from the marketers and refinery operators to the supply chain operators and the government regulator, to discuss how fuel price can be stabilized and how guaranteed constant supply can be assured.
With the recent encounter with Francis Ogaree, Executive Director, Distribution Systems, NMDPRA, the forum would be seeking to set the benchmark for equitable and transparent price setting of the fully deregulated downstream fuel market in Nigeria. Talk on the readiness of the local refineries to receive feedstock, logistics challenges, and policy interventions that would spur a well-oiled and consumer-friendly downstream petroleum sector is also in the agenda.
Petrol price dip is short-term relief for Nigerians amidst economic hardships and periods of high inflation. Nevertheless, experts opine that sustainable fuel price stability would still depend on the success of reform in regulation, increasing local refining, and improved distribution infrastructure.
Out of these challenging hours of reconciling with its post-subsidy fuel hours, collaboration between the government and the private sector is necessary to forge a more stable and more equitable energy price regime.
