What they are saying

PETROAN stated that recent developments in the global oil market indicate that crude oil prices are experiencing a downward trend. The association said the moderation in crude prices should translate into lower petroleum product prices in Nigeria.

• "Brent crude has fallen to approximately $77-$78 per barrel following the ceasefire agreement between the United States and Iran and expectations that oil exports through the Strait of Hormuz will gradually normalize."
• "Market analysts have noted that crude oil prices are currently under downward pressure, although geopolitical risks remain."
• "While factors such as a breakdown in peace negotiations, fresh supply disruptions, or unexpected production cuts by OPEC and its allies could trigger upward price movements, the prevailing market outlook remains relatively stable to bearish."

The association identified continued implementation of the U.S.-Iran peace agreement, increased crude oil exports from the Middle East and concerns over weaker global oil demand as factors contributing to the decline in crude oil prices.

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PETROAN President, Billy Gillis-Harry, expressed concern that in some instances, the landing cost of imported petroleum products appears to be lower than the prices offered by domestic refiners.

• He noted that the development highlights the need for a more competitive downstream petroleum market where consumers can access products at the most affordable prices available.
• PETROAN called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing import licences to qualified marketers.
• The association said increased competition among suppliers would help moderate prices, discourage monopolistic tendencies and ensure steady supply of petroleum products.

PETROAN urged the Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, to facilitate discussions with Chinese firms interested in operating the Port Harcourt and Warri Refineries.

The association said successful revival of the refineries under private-sector-driven management could improve supply stability and reduce petroleum product prices.

Gillis-Harry said competition remains one of the most effective mechanisms for improving efficiency, reducing costs and protecting consumers. He added that sustained moderation in crude oil prices, alongside stable exchange rates and refining costs, should support lower petrol prices.

What you should know

The global oil market recently reacted to developments involving the United States and Iran, with crude prices declining following expectations of improved energy supply and reduced geopolitical risks.

• The United States announced a peace deal with Iran, a development that could bring an end to the three-month conflict that affected global markets.
• The announcement included the lifting of a weeks-long U.S. naval blockade of Iranian ports and the reopening of the Strait of Hormuz to global shipping.
• The development triggered a decline in crude oil prices as investors priced in the possibility of improved global energy supplies.

PETROAN said lower crude prices, stable exchange rates and efficient refining operations should help provide relief to Nigerian consumers and businesses.

PETROAN reiterated its commitment to advocating for a transparent, competitive and consumer-friendly downstream petroleum sector that supports fair pricing, energy security and sustainable economic growth.