Global oil prices don fall to level wey we last see before US-Iran war, but for Nigeria, pump price of petrol still high, above N1,000 per litre. Daily Trust fit report say consumers and businesses don expect say price go come down, but nothing don change for many filling stations.
Brent crude, wey be international benchmark, don drop sharply from di highs wey e reach during di war on Iran by US and Israel. Dat war raise geopolitical tension for Middle East and cause closure of Strait of Hormuz, wey control one-fifth of global oil supply. But now, as tension dey ease and peace agreement don sign, crude price don fall near pre-war level.
However, for Nigeria, price of premium motor spirit (PMS) don only drop by N75 since di war start. Before di war, litre of petrol dey sell between N770 and N800. Now, e dey sell between N1,200 and N1,300, depending on location. Nigerians expect say as crude price fall, petrol price go follow, but e no happen so.
Analysts say if market condition continue like dis and naira remain stable, marketers go feel pressure to reduce pump price for weeks ahead. One marketer wey talk to our correspondent say ex-depot price no suppose pass N700 per litre, but now e dey N1,180.
Oil and gas analyst, Dr. Ayodele Oni, tell our correspondent say di fall no go immediately translate to lower pump price. According to am, for ordinary Nigerian, even if crude fall back, pump price no go follow all di way down. Our market dey deregulated, and di binding factor no be Brent or crude price alone, but exchange rate, because landed petrol cost dey priced in dollars. Dat matter for cost of living, because petrol feed directly into transport and food price. Relief for pump only reach market and dinner table if naira hold firm while crude ease. Lower crude dey necessary, but on its own e no enough. Di naira dey do much of di heavy lifting. Di alternative na local crude pricing wey no reflect international crude price or FX.
