Nigerians demand fuel price cut after Strait of Hormuz reopens

By Ejire Folakunmi

Nigerians are mounting pressure on fuel marketers to reduce petrol prices following the reopening of the Strait of Hormuz, a critical global shipping lane that had been disrupted for weeks amid tensions between United States and Iran.

The waterway, which accounts for roughly 20 percent of global oil supply, had been partially shut since late February, triggering a sharp spike in crude prices and pushing pump prices in Nigeria from about ₦800 to as high as ₦1,261 per litre in some areas. During the peak of the crisis, Brent crude surged past $100 per barrel.

However, with vessels now gradually resuming passage under monitored conditions and crude prices easing to between $91 and $96 per barrel, many Nigerians argue that domestic fuel prices should follow the same downward trend.

Social media platforms have been flooded with reactions, including a pointed remark from commentator Daniel Regha, who questioned whether refiners and marketers, particularly Dangote Refinery and retail operators, would act swiftly to cut prices.

“Hope the Dangote refinery, filling stations, and traders will quickly drop their prices immediately now that the Strait of Hormuz has re-opened?” he wrote, echoing a broader sentiment that price increases in Nigeria are often immediate, while reductions tend to lag.

Another user, Michael Nwaokike, suggested that marketers may delay any adjustments, citing the common industry explanation that existing stock was purchased at higher rates.

Despite the pressure, analysts note that price reductions may not be immediate. Factors such as existing inventory costs, transportation logistics, and exchange rate volatility could slow the pace of adjustment at the pump. Current retail prices across parts of the country still hover between ₦1,200 and ₦1,360 per litre.

Nonetheless, energy experts say a sustained de-escalation in the Gulf and continued stability in global oil markets could see petrol prices dip below ₦1,000 per litre in the coming weeks, if market forces are fully reflected locally.

The development has once again spotlighted Nigeria’s sensitivity to global oil shocks, even as Africa’s largest crude producer, and reignited calls for more transparent and responsive pricing mechanisms in the downstream sector.