Global crude prices have dropped to levels last seen before the outbreak of hostilities involving Iran earlier this year, leaving Nigerians hoping for a matching fall in pump prices that have stayed stubbornly high.
Brent crude, the benchmark for Nigerian oil, briefly slipped below $72 a barrel before edging back to about $73, wiping out the war premium that had driven prices sharply higher amid fears of supply disruption. The retreat followed easing conditions around the Strait of Hormuz as vessel traffic resumed after months of uncertainty.
At filling stations, however, the relief has yet to show, with petrol still selling for between N1,250 and N1,360 a litre depending on location. Because crude is the biggest cost in petrol production and import pricing, the slide has renewed calls for lower pump prices, especially as elevated fuel costs continue to feed inflation in transport, food and production.
Prices have fallen steadily since the United States and Iran signed a memorandum on June 17 setting a 60 day window for talks on Tehran’s nuclear program. Maritime intelligence firm Kpler reported 284 vessels crossing the strait from June 18, still below the pre-conflict daily average. Crude had surged past $80 in early March and peaked near $120 in April before returning below $80 by late June.
Separately, US President Donald Trump ordered an investigation into major energy companies, accusing firms such as Shell and ExxonMobil of failing to pass on lower oil costs to drivers, a charge the American Petroleum Institute rejected by noting that fuel prices do not move in step with crude. In another development, energy technology firm Baker Hughes secured a long-term agreement with the ANOH Gas Processing Company to operate and maintain key equipment at its plant in Imo State. ANOH managing director James Makinde said the partnership would support reliable operation of critical turbomachinery and Nigeria’s domestic energy goals, while Baker Hughes executive Maria Claudia Borras tied it to the country’s shift towards lower carbon
