The Independent Petroleum Marketers Association of Nigeria (IPMAN) has assured users of petroleum products in Nigeria that prices of the petroleum products, especially fuel, will come down as the prices of crude oil at the global market continue to fall. IPMAN National Publicity Secretary, Chinedu Ukadike, however, also said that the price reductions will not be automatic.
In an interview with New Telegraph yesterday, he argued that when the oil prices rose at the international market because of the war between Israel and Iran, the prices of petroleum products, including fuel, in Nigeria did not automatically rise.
According to him, it took some time before petroleum products’ prices were increased in the country. He stated that the same will apply as crude oil prices continue to fall at the international market.
He said that normally old stock would be sold out before price change would be effected. He noted that currently, crude oil prices have been fluctuating but added that when they continue to fall to a certain amount, prices of petroleum products in Nigeria will also fall. Ukadike said: “When oil prices went up, the refiners and marketers did not immediately increase prices of petroleum products. It took some time before that change took place.
So, the products already in stock will also be sold out before the new regime product and price will come into effect. “If the oil prices at the international market continue to go down, it will also have a trickle effect. It will definitely come down. I assure Nigerians that.”
Oil prices have been fluctuating since Tuesday following the news of the ceasefire between Israel and Iran. On Tuesday, oil prices fell sharply returning to levels last seen before the Iran-Israel conflict. Brent crude, which is the global oil benchmark, fell by 6.1% to $67.14 a barrel while West Texas Intermediate crude, the US oil benchmark, fell by 6% to trade at $64.37 a barrel.
On Wednesday, crude oil prices went up finding some respite after plummeting in the last two sessions, as investors assessed the stability of a ceasefire between the two countries.
Brent crude futures rose 75 cents, or 1.1%, to $67.89 a barrel. U.S. West Texas Intermediate (WTI) crude gained 71 cents, or 1.1%, to $65.08. The crude oil prices rose slightly yesterday as President Donald Trump of the United States reaffirmed his commitment to maintaining pressure on Iranian oil revenues.
