A fresh fuel price battle may be brewing in Nigeria’s downstream petroleum sector as marketers push refiners and importers to cut fuel prices, citing falling crude oil prices and declining petrol-landing costs.

National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Mr Billy Gillis-Harry, said Brent crude’s slide to about $77 per barrel has weakened the justification for current petrol prices and should trigger immediate reductions at depots and filling stations nationwide.

He added that falling oil market, coupled with indications that imported petrol is becoming cheaper than some locally refined products, has created conditions for another round of fuel price cuts across the country.

Billy Gillis-Harry said the downstream market must respond swiftly to changing market fundamentals, stressing that consumers should not continue to pay prices that fail to reflect falling crude oil costs.

Brent crude, which surged above $120 per barrel at the height of tensions surrounding the Strait of Hormuz, has slipped to about $77-$78 per barrel following a ceasefire agreement involving the United States and Iran and expectations of normalised oil exports from the region.

The development has sparked expectations of another round of petrol price reductions across the country, particularly as market observers project crude prices could remain within a relatively subdued range of $75-$82 per barrel in the coming days.

PETROAN noted that the current market environment is increasingly favouring lower fuel prices, citing improved Middle East supply prospects, easing geopolitical risks and concerns about weaker global oil demand.

In what could intensify competition in Nigeria’s deregulated downstream sector, the association disclosed that the landing cost of imported petroleum products now appears lower than the prices offered by some domestic refiners.

The development, according to PETROAN, raises fresh questions about market competitiveness and suggests that importers may be in a stronger position to drive down retail fuel prices if current trends persist. (The Sun)