Fuel Price Reductions: Are Consumers Really Benefiting?

In recent weeks, Nigeria has witnessed a series of reductions in the price of premium motor spirit (PMS), commonly referred to as petrol. The Nigerian National Petroleum Company (NNPC) led this adjustment, lowering its retail price to N965 per litre in Abuja, down from N1,060 per litre earlier this month. Similar reductions have been reported in Lagos and other parts of the country, though prices remain inconsistent across independent and major marketers.

For instance, in Lagos, petrol prices at some NNPC outlets have fallen to N960 per litre, while in other locations, prices still hover between N1,030 and N1,070 per litre. In Port Harcourt and Kano, prices vary even further due to logistical costs and supply chain inefficiencies. These changes come on the heels of announcements by the Independent Petroleum Marketers Association of Nigeria (IPMAN), which stated that the Dangote Petroleum Refinery had reduced its ex-depot price, enabling independent marketers to potentially lower their prices to N935 per litre nationwide.

However, the question remains: Are these price reductions genuinely benefiting the average Nigerian? While some consumers welcome the change, others argue that accessibility and uniformity are still significant hurdles.

Consumers React to the Fuel Price Changes

Nneka Okoro, a teacher in Lagos said “The price reduction is a small relief for people like me who depend on public transportation. However, it’s not enough. Transport operators don’t reduce fares immediately, so I don’t feel the impact directly. Also, some stations are still selling at over N1,000 per litre, which is unfair.”

Ahmed Yusuf, an Uber driver at the Deeper Life Conference Centre, Lagos Ibadan expressway, express gratitude for the reduction and hope for more reduction. “I buy fuel every day for my business, so even a small drop makes a difference. But the long queues at NNPC stations are a big problem. Most private stations still sell at higher prices, and I can’t afford to waste hours in line.” he said

Rita Ugochukwu, a small business owner in Abuja wants the government to enforce uniform fuel prices to benefit everyone. “The price change has been inconsistent in my area. Some stations reduce prices, but others don’t. I wish the government could enforce a uniform price so that everyone benefits equally.” she said

Musa Ibrahim, a food retailer complains of not having to feel the impact of reduction by the government, hoping for more uniformity in fuel price across Abuja and Nigeria like Rita Ugochukwu. “In rural areas like mine, the cost of transporting goods to the market is still high because fuel prices are not uniform. Even with reductions in some cities, we don’t feel the impact here.”

Experts Weigh In on the Impact of Fuel Price Reductions

Dr. Tunde Alabi, an Energy Economist  said“While the reductions are a step in the right direction, they are not enough to address the underlying issues. Uniform pricing is difficult to achieve because of the decentralised nature of the distribution network. Logistics, infrastructure, and market forces will continue to create disparities.”

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Engr. Adebayo Ige, a Petroleum Industry Expert said: “The inconsistency in pricing stems from the supply chain and distribution costs. While the government and refineries like Dangote are working to stabilize prices, enforcement mechanisms are weak. For consumers to truly benefit, the government needs to improve infrastructure and regulate the industry more effectively.”

The Road Ahead: Addressing Accessibility and Uniformity
Despite the recent reductions, many Nigerians still face challenges in accessing affordable fuel. Long queues at NNPC stations reflect a high demand for the reduced-price product, while independent marketers often maintain higher rates. For rural communities, where logistics costs are higher, the situation is even more dire.

Experts suggest that addressing these challenges will require coordinated efforts between the government, marketers, and refineries. Improved infrastructure, better enforcement of pricing regulations, and transparency in the supply chain could ensure that all Nigerians benefit equally from price reductions.

Until then, the question of whether consumers are truly benefiting from these changes remains complex, with answers varying depending on location and access to affordable fuel.

While fuel price reductions are a welcome development, their uneven implementation across Nigeria highlights the challenges of creating a system that benefits everyone equally. For many Nigerians, accessibility, uniformity, and transparency remain the key issues that need urgent attention.