US-Iran Ceasefire: Why Petrol Still Costs N1,200/Litre Despite Crude Crash to $70 - Newstrends
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US-Iran Ceasefire: Why Petrol Still Costs N1,200/Litre Despite Crude Crash to $70

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FG Moves Against Filling Stations Short-Changing Nigerians With False Measurements

US-Iran Ceasefire: Why Petrol Still Costs N1,200/Litre Despite Crude Crash to $70

The sharp decline in global crude oil prices following the ceasefire agreement that ended months of hostilities between the United States and Iran has renewed questions over why petrol prices in Nigeria remain around N1,200 per litre despite the easing of pressures that had pushed up energy costs during the conflict. Brent crude, the international benchmark against which Nigeria’s Bonny Light is priced, has fallen to around $70 per barrel from a peak of about $126 recorded during the height of the conflict, representing a decline of more than 42 per cent. The latest oil price slump has effectively erased the war premium that had built into the market amid fears that hostilities could disrupt supplies passing through the Strait of Hormuz, a critical shipping route through which nearly one-fifth of the world’s crude and liquefied natural gas shipments transit. The three-month conflict, which began on February 28, 2026, sent shockwaves through global energy markets as traders feared a blockade of the strait and a possible escalation involving Gulf producers. The uncertainty pushed crude prices sharply higher, with Brent crude climbing from around $68 per barrel before the crisis to above $120 and peaking near $126 per barrel in April. The rise translated into higher prices for refined products worldwide and put upward pressure on petrol prices in importing countries, including Nigeria. Before the outbreak of the conflict, petrol sold for between N830 and N900 per litre across much of Nigeria. As crude prices surged by approximately 85 per cent, pump prices climbed to around N1,360 per litre, representing an increase of about 54 per cent. However, while crude oil has surrendered much of its war-induced gains, domestic petrol prices have been far slower to follow suit.

Analysts say the discrepancy highlights an asymmetry that has long characterized fuel markets globally—what experts describe as the “rockets and feathers” effect, where prices rise like rockets when crude increases but descend like feathers when oil prices retreat. The de-escalation of tensions and diplomatic efforts between Washington and Tehran have eased concerns over supply disruptions, leading to a broad sell-off in oil markets. Additional downward pressure came from expectations that Iranian exports could return more fully to international markets and that shipping through the Strait of Hormuz would normalize. Concerns about weaker global demand and rising output from non-OPEC producers have also contributed to the decline. Based on analysis of the price transmission mechanism, when crude prices climbed from $68 to $126 per barrel, petrol prices rose from roughly N850 to N1,300 per litre. Using the same mechanism, the current decline in crude prices of more than 41 per cent should ordinarily place petrol prices between N900 and N1,000 per litre. However, analysts caution that crude oil accounts for only part of the final cost of petrol. Exchange rates, shipping charges, storage costs, transportation expenses, dealer margins, and taxes all influence the retail price. Even after accounting for these variables, energy experts say Premium Motor Spirit should realistically retail around N1,000 per litre.

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Following the de-escalation of tensions, the Dangote Petroleum Refinery cut its petrol gantry price by N75 per litre from N1,250 to N1,175, effective June 16, and also lowered diesel and aviation fuel prices. The refinery attributed the reduction to improved market fundamentals following the de-escalation of tensions in the Middle East. It also lowered its coastal supply price from N1,595,790 to N1,495,215 per metric tonne, reducing procurement costs for marketers. The move strengthened expectations that pump prices would decline further. However, many Nigerians argued that the reductions did not fully reflect the sharp decline in crude oil prices. A source within the Dangote Group noted that the refinery was still observing market developments while processing crude purchased during the crisis period, adding that prices could still drop to as low as N900 per litre, “but we still have the expensive crude in our tanks.”

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Ukadike, explained that lower ex-depot prices are already easing pressure on marketers and improving their capacity to stock products. According to him, the decline in supply costs has reduced the amount of working capital required to sustain operations. Ukadike noted that marketers who previously struggled to finance product purchases would now be able to increase stock levels, thereby improving product availability across retail outlets. Ukadike also dismissed concerns that marketers could hoard products in anticipation of future price increases, noting that intense competition within the deregulated downstream sector would make such practices difficult to sustain. “Competition will force marketers to sell at prevailing market prices. Nobody can afford to hold products indefinitely because other operators will undercut them,” he said. He projected that petrol could sell for between N1,200 and N1,250 per litre in Lagos once new stock enters the market, while prices may remain slightly higher in other parts of the country due to transportation costs. Ukadike urged consumers to be patient, noting that immediate reductions would expose marketers to losses on existing stock.

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The issue is not peculiar to Nigeria. In the United States, President Donald Trump has ordered the Department of Justice to investigate major oil companies over allegations that they are failing to reduce pump prices in line with falling crude oil costs. In a post on Truth Social, Trump accused oil companies of exploiting consumers, writing: “The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock! In other words, customers are being ‘gouged’.” The American Petroleum Institute rejected allegations of price manipulation, arguing that retail fuel prices do not instantly mirror changes in crude oil prices because refining costs, inventories and supply chain dynamics influence final prices. Analysts describe this phenomenon as the “rockets and feathers” effect.

Industry observers say increased liquidity among marketers could intensify competition and ultimately accelerate the transmission of lower crude prices to consumers. They note that the growing influence of Dangote Refinery, coupled with increasing rivalry among importers and independent marketers, is changing pricing dynamics in the downstream sector. Some analysts believe that if Brent crude remains below $75 per barrel and geopolitical stability is sustained, petrol prices could gradually decline below N1,000 per litre and possibly approach N900 per litre in the coming days. The expected decline could provide much-needed relief for households and businesses battling elevated transportation and energy costs. Since the removal of subsidy by President Bola Tinubu in May 2023, petrol prices have remained one of the major drivers of inflation, affecting food prices, manufacturing costs and the overall cost of living. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on refiners, depot owners, and importers to reduce fuel prices following the decline in global crude prices, urging the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing import licences to qualified marketers to encourage competition. However, experts caution that the ceasefire is not yet permanent—a 60-day extension has been agreed while negotiations continue over Iran’s nuclear programme. Market observers also note that the restoration of full oil flows through the Strait of Hormuz may take months, as vessel operators and insurers remain cautious, preferring to observe sustained safe transits before re-engaging the route.

US-Iran Ceasefire: Why Petrol Still Costs N1,200/Litre Despite Crude Crash to $70

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Uwatse Joins Ade-Ojo, Maduka in Exclusive League of Nigeria Auto Legends

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Uwatse Joins Ade-Ojo, Maduka in Exclusive League of Nigeria Auto Legends

 

In a rare recognition of industry leadership and enduring contributions to Nigeria’s automotive sector, the Nigeria Auto Journalists Association (NAJA) has named Chief Benson Uwatse, Chairman of Weststar Associates Limited, recipient of the prestigious Nigeria Auto Legend Award at the 19th Nigeria Auto Industry Awards.

Uwatse’s emergence places him in an exclusive league of automotive icons, making him the third industry heavyweight to receive the distinction after Chief Michael Ade-Ojo, Chairman of Toyota Nigeria Limited, and Dr Cosmas Maduka, President and Chief Executive Officer of Coscharis Group.

The recognition celebrates Uwatse’s more than three decades of involvement in the Nigerian automotive industry, particularly his role in advancing the Mercedes-Benz brand and strengthening its presence in the country’s premium and luxury vehicle market.

The recognition underscores Uwatse’s longstanding involvement in the Nigerian automotive sector and his contributions to the development and representation of the globally renowned Mercedes-Benz brand in the country.

As Chairman of Weststar Associates Limited, the authorised general distributor of Mercedes-Benz in Nigeria, Uwatse occupies a strategic position in the country’s premium and luxury automobile market.

Weststar is responsible for coordinating Mercedes-Benz’s business activities in Nigeria, covering passenger cars, commercial vehicles, trucks and buses, alongside dealer support, marketing, training, genuine spare parts supply, warranties and after-sales services.

The company officially commenced operations in February 2008, assuming responsibility for Mercedes-Benz sales and after-sales operations in Nigeria. Its distribution network and authorised dealerships provide sales and servicing support across different parts of the country.

Uwatse’s association with the Mercedes-Benz brand spans more than three decades, giving him considerable experience in the Nigerian automotive business, particularly in premium vehicle distribution, customer relations and brand development.

His involvement in the business has also included leadership responsibilities in the Mercedes-Benz dealership network, specifically as Managing Director of MB Automobile Services Limited, one of the authorised Mercedes-Benz dealers in Nigeria.

The Nigeria Auto Legend Award is particularly significant because it recognises individuals whose contributions extend beyond routine business operations to the development, growth and advancement of the nation’s automotive industry.

Chief Ade.Ojo, the founder of Elizade Nigeria Limited and Chairman of Toyota Nigeria Limited, was the first recipient of the special industry recognition in 2017, in acknowledgement of his decades of investment, enterprise and contributions to Nigeria’s automobile business.

Dr Maduka, who transformed Coscharis from a modest automobile trading venture into one of Nigeria’s leading indigenous conglomerates, also earned recognition for his remarkable contributions to the automotive sector. Under his leadership, Coscharis Motors secured distribution franchises for several globally recognised automobile brands, including BMW, MINI, Rolls-Royce and Ford.

Uwatse’s emergence as the third recipient further reinforces NAJA’s commitment to celebrating individuals whose leadership, enterprise and industry experience have contributed significantly to the evolution of Nigeria’s automotive landscape.

The 19th edition of the Nigeria Auto Industry Awards, organised by NAJA, is scheduled to hold on Thursday, December 3, 2026, at the Civic Centre, Victoria Island, Lagos.

The annual awards bring together automobile manufacturers, distributors, dealers, policymakers, regulators, industry professionals and other stakeholders to celebrate outstanding achievements and recognise excellence across Nigeria’s automotive and transportation sectors.

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Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention

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Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention

Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention

Continental Reinsurance Holdings Limited has strengthened its investment proposition ahead of its proposed listing on the Botswana Stock Exchange (BSE), following regulatory approval of its Supplementary Prospectus, which introduces significant changes to its shareholding structure and incorporates improved half-year financial results.

The development is expected to boost investor confidence in the planned Initial Public Offering (IPO), particularly following the decision by promoter-controlled existing shareholder vehicle, ACA Cornerstone Limited, to retain its entire stake in the company rather than exit as initially contemplated.

Under the revised offer structure, ACA Cornerstone will retain all 253,951,336 shares it currently holds, representing approximately 11.9 per cent of Continental Reinsurance Holdings’ enlarged issued share capital after completion of the offer, assuming all contemplated new shares are issued.

The shareholder has also provided a formal undertaking, subject to specified conditions, to retain the shares for a minimum of five years following the company’s listing.

The commitment represents a significant shift from the original offer structure and signals continued confidence in the company’s business prospects, while strengthening alignment between existing and prospective shareholders.

Commenting on the development, Group Managing Director of Continental Reinsurance Holdings, Mutsunge Lawrence Nazare, said the revised offer reflected the company’s willingness to engage with investors and address their concerns.

“We have engaged closely with investors and taken on board their feedback. The revised offer reflects that engagement and reinforces our long-term investment proposition,” Nazare said.

He explained that ACA Cornerstone’s decision to remain invested, alongside its five-year share retention undertaking, demonstrated its continued commitment to the business and its future.

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According to him, the development would strengthen the relationship between existing and incoming shareholders as the company prepares to enter the Botswana Stock Exchange.

Beyond the revised shareholding arrangement, the Supplementary Prospectus incorporates the Group’s audit-reviewed interim financial results for the six months ended June 30, 2026, showing a significant improvement in profitability and underwriting performance.

The company’s profit before tax surged by approximately 352 per cent to P79.2 million, compared with P17.5 million recorded during the corresponding period of 2025.

Similarly, profit after tax increased by approximately 902 per cent, rising to P64.4 million from P6.4 million in the previous year’s comparable period.

Insurance revenue also recorded growth, increasing by 2.4 per cent to P1.213 billion, reflecting continued business activity and revenue generation across the Group’s operations.

The company also reported a notable improvement in its underwriting performance, with its underwriting margin rising to 6.8 per cent from 4.2 per cent in the corresponding period of the previous year.

The improved margin points to stronger underwriting results during the period, complementing the significant growth recorded in the Group’s overall profitability.

As of June 30, 2026, Continental Reinsurance Holdings reported total assets of P3.27 billion and shareholders’ equity of P1.43 billion, providing further insight into its financial position ahead of the proposed public listing.

Despite the changes to the offer structure and the improved financial performance, the company said its offer price would remain unchanged at P1.00 per share.

Continental Reinsurance Holdings is maintaining its target of raising USD30 million in new growth capital through the offer for subscription. The funds are expected to support the Group’s growth ambitions and strengthen its capacity to pursue opportunities within the reinsurance market.

The Public Offer will remain open until 15:30 on Friday, November 20, 2026, while the company’s listing on the Main Board of the Botswana Stock Exchange is scheduled for December 10, 2026, subject to the fulfilment of applicable listing requirements.

The company has also made provisions for investors who submitted applications before the publication of the Supplementary Prospectus to reconsider their investment decisions in light of the revised offer.

Such investors may maintain, amend or withdraw their existing applications. However, the deadline for submitting amendment or withdrawal notices is November 11, 2026.

Applications for which no amendment or withdrawal notice is received by the stipulated deadline will remain valid and unchanged.

The Supplementary Prospectus is expected to be read alongside the original Prospectus dated August 4, 2026. Both documents are available on the company’s website, www.continental-re.com, as well as through its sponsor, Motswedi Securities.

With the retention of a major existing shareholder, a five-year commitment against an early exit, and substantially improved interim financial results, Continental Reinsurance Holdings is seeking to reinforce investor confidence as it moves closer to its planned entry into the Botswana capital market.

Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention

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EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks

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EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks

 

Officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Economic and Financial Crimes Commission (EFCC) have uncovered an illegal refinery allegedly linked to Chinese nationals at Ogere-Remo, Ikenne Local Government Area of Ogun State.

The facility, which occupies more than three hectares of land, was raided on Wednesday following intelligence gathered by the EFCC, revealing what investigators described as a well-fenced but unauthorised crude oil processing operation.

During the operation, the joint team discovered underground tanks suspected to have been used for heating and processing sludge oil, a waste product from refining, as well as substances believed to be Automotive Gas Oil (AGO), commonly known as diesel.

NMDPRA officials subsequently sealed the facility pending further investigation.

Speaking during the inspection, the Ogun State Coordinator of NMDPRA, Dr Atilola Akinyemi, said the facility was operating without approval or a licence from any recognised regulatory authority.

He disclosed that an underground storage installation behind the facility had an estimated capacity of more than 90,000 litres, alongside underground heating systems, water hydrants for cooling, locally fabricated tanks and silos designed for separating processed substances.

Describing the operation as illegal, Akinyemi said the operators appeared to possess technical expertise but had deliberately designed the facility to evade regulatory oversight.

“This facility you see here is very crude and completely illegal. This is not a refinery by any standard. It does not have a permit from any regulatory authority and its operations are unknown to the relevant authorities.

“They appear to be technically skilled people who have deliberately designed this facility to circumvent government regulations. When we examine their final product, it may look like diesel to the average person, but we cannot classify it as diesel until laboratory tests have been conducted,” he said.

The EFCC Zonal Director, Lagos Zonal Directorate 2, Bawa Usman Kaltungo, said the discovery pointed to a well-established illegal refining operation involving several stages of processing sludge into products resembling diesel.

“What we have seen here is an illegal refinery with a complete setup, featuring all the processes through which sludge passes before being converted into what is commonly referred to as diesel. Judging by the nature of this facility, it has been operating for years,” Kaltungo said.

He raised concerns over the growing involvement of foreign nationals in illegal industrial activities around the Ogere axis, recalling that 14 Chinese nationals were arrested in the area a week earlier over alleged illegal lithium processing.

According to him, investigations into the earlier operation revealed immigration irregularities, with some of the suspects allegedly lacking passports, while others were found to have overstayed their visas by about three months.

“Some of them had passports, while others did not. Even among those who had passports, we discovered that some of their visas had expired about three months earlier. Yet, there were still individuals operating there without passports,” he said.

Kaltungo vowed that those behind the illegal refinery would be identified and brought to justice.

Also speaking, the Director of the EFCC’s Department of Proceeds of Crime Management, Mr Gbolahan Latona, condemned the activities, warning that illegal operations of this nature undermine legitimate investments in Nigeria’s petroleum industry.

“Imagine allowing saboteurs like these to operate freely and undermine the efforts of legitimate investors like Dangote Refinery. Ultimately, it is Nigerians who will suffer,” Latona said.

The discovery comes amid renewed efforts by regulatory and law enforcement agencies to clamp down on illegal industrial operations, economic sabotage and activities capable of undermining investments in Nigeria’s oil and gas sector.

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