Fuel marketers are considering a reduction in petrol prices following a drop in global crude oil prices and a recent cut in the gantry price by Dangote Refinery.
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The Federal Government is scheduled to meet refiners, depot owners, fuel marketers and retailers to discuss pricing and competition in the downstream petroleum sector.
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The Nigerian Midstream and Downstream Petroleum Regulatory Authority said the consultative meeting would be held on Tuesday in line with provisions of the Petroleum Industry Act and the Federal Competition and Consumer Protection Act.
The meeting comes as petrol prices have risen to between N1,395 and N1,450 per litre in Abuja and other parts of the country.
Global crude oil prices have also declined, with Brent crude and West Texas Intermediate falling by more than three per cent to about $100.50 and $92.43 per barrel respectively at the time of the report.
Against this backdrop, Dangote Refinery reduced its gantry price by N25 per litre on Monday, bringing it down to N1,325 per litre.
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The reduction ended more than two weeks of increases in the refinery’s petrol price and has raised expectations that retail prices could also decline in the coming days.
National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, said marketers would consider the possibility of reducing petrol prices during the consultation with government agencies and other industry stakeholders.
He said the interests of consumers would be considered during the discussions but maintained that marketers also had to take their operating costs into account.
Gillis-Harry also dismissed calls for petrol to be sold at N500 per litre, saying such a price would not be achievable under current market conditions without government subsidies.
His comments came after civil servants under the Joint National Public Service Negotiating Council asked President Bola Tinubu to reduce petrol prices to N500 per litre or increase the minimum wage to N500,000.
With Dangote Refinery lowering its price and crude oil prices falling, the outcome of the government’s stakeholder meeting could influence the direction of petrol prices in the domestic market.
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