Professor Emeritus of Petroleum Economics and renowned energy expert Wumi Iledare has explained why falling crude oil prices do not immediately translate to a reduction in fuel pump prices.
Prof. Iledare noted that while it is natural for consumers to expect that if a major input falls, the prices of refined petroleum products should also decline, it is, however, important to recognise that the relationship between crude oil prices and retail petroleum product prices is neither direct nor instantaneous.
He disclosed this in a statement on Friday.
His comment comes amid calls by Nigerians for a commensurate drop in the price of fuel following the drop in the crude oil price.
DAILY POST reports that West Texas Intermediate and Brent crude fell to $69.34 and $72.56 per barrel, respectively, at almost the same rate before the Iran-United States-Israel war escalation on February 28, 2026.
With the falling crude prices to pre-Middle East crisis levels, consumers have demanded a drop in the price of fuel to around N900 per litre, the rate before the crisis.
Currently, retail fuel prices stand between N1241 and N1305 per litre in Abuja after the petrol reduction.
Recall that in the last two weeks, Dangote Refinery had reduced its gantry petrol price by N125 to N1,125 per litre, with the latest on Thursday.
Despite this, Nigerians have continued to urge further reductions in a commensurate measure with the crude oil price drop.
Two days prior, United States President Donald Trump had ordered his officials to investigate elevated gasoline
