CORAN blames FX crisis, Naira-for-Crude suspension for high petrol prices despite global Oil price drop

Despite a sharp drop in global crude oil prices, Nigerians continue to grapple with soaring Premium Motor Spirit (PMS), commonly known as petrol, prices—a situation the Crude Oil Refinery Owners Association of Nigeria (CORAN) attributes to multiple domestic challenges.

CORAN, through its spokesperson Eche Idoko, explained that the continued rise in petrol prices across the country is driven by the collapse of the Naira-for-crude oil sales arrangement, the influence of profiteering middlemen, and the ongoing depreciation of the Naira in the foreign exchange market.

His remarks followed the global oil market trend, which saw Brent crude dropping to $64 per barrel and West Texas Intermediate (WTI) plummeting to $59.70 over the weekend.

These declines have been linked to U.S. tariffs under the Trump administration and a surprise supply cut announcement by the Organisation of Petroleum Exporting Countries and its allies (OPEC+).

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However, the price relief expected from falling crude rates has not materialized for Nigerians. Instead, pump prices have continued to climb, with fuel selling between N900 and N975 per litre depending on the region.

“The price will continue to rise because these middlemen are the elements that want to see that local refining is not sustained,” Idoko warned.

“You have the FX effects, you have the effects of the logistics of shipping in refined petroleum products, and then you also have the effect of the middlemen. All these will push the cost of petroleum products high in Nigeria.”

The fuel price hike comes on the heels of last week’s increase by major players such as MRS filling stations, a key partner of Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL).

Further exacerbating the situation is the suspension of petrol sales in Naira by the Dangote Refinery on March 19, 2025. The halt reportedly followed a breakdown in the Naira-for-crude oil arrangement between the company and the federal government through the NNPCL.

As the gap between global crude prices and local pump rates widens, concerns continue to mount over Nigeria’s refining capacity, foreign exchange instability, and the pervasive grip of petroleum importation intermediaries.