PENGASSAN Petrol Price Drop Sparks Hope, Warns of Theft Threat

PENGASSAN Petrol Price Drop Sparks Hope, Warns of Theft Threat

PENGASSAN petrol price drop has brought a fresh wave of relief to Nigerians battling rising living costs. For many commuters, families, and business owners, cheaper petrol means one less burden to carry. But while the news sounds good, there’s an urgent warning beneath the celebration: crude oil theft and pipeline vandalism could quickly ruin these gains.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has pointed to improved foreign exchange stability and increased local refining as the main reasons behind the drop in pump prices. The union is urging the federal government to keep supporting the reforms that are making this change possible.

PENGASSAN General Secretary, Comrade Lumumba Okugbawa, shared his thoughts during a chat with The Nation, expressing satisfaction with the market shift. “This is a welcome situation for us and a welcome relief for both consumers and independent marketers,” he said.

For years, Nigerians have grown used to fuel prices going up—especially during times of high demand. But this time, something different is happening. Prices are falling because supply is rising. More companies are competing, and more fuel is being made locally. This “price war,” as Okugbawa described it, is helping everyday Nigerians pay less at the pump.

He explained that several changes have come together to make this possible. First, the government’s naira-for-crude model has helped stabilize supply and improve liquidity in the fuel market. Second, local refining has picked up. The Port Harcourt and Warri refineries are coming back to life, and the massive Dangote Refinery is starting to have an impact, even before reaching full production.

These improvements mean more petrol is available in Nigeria, and marketers are being forced to drop their prices to stay competitive.

“Contrary to the usual trend of rising prices during periods of high demand, we are now seeing a decline due to increased supply and competition. This price war has been beneficial,” Okugbawa said.

But the union leader also made it clear that these improvements are still fragile. If Nigeria doesn’t act fast against oil theft and vandalism, this progress may not last long.

“The twin problems of oil theft and pipeline vandalism are not new to Nigeria,” Okugbawa said.

“Indeed, like in a handful of other crude oil-producing nations worldwide, the multi-decade economic menace is almost as old as the global economy itself.”

When criminals tap into pipelines or steal crude oil, everyone suffers. The government loses money. Oil companies lose profits. Communities face job losses and disrupted services. Investors become nervous. The entire economy takes a hit.

“Crude oil theft and losses through pipeline vandalism pose serious threats not only to oil and gas exploration and exploitation in the country but also have huge negative consequences on the country’s economic growth, business prospects, and profit earnings by oil companies,” he said.

Okugbawa warned that if these crimes continue, the country’s economy could weaken even further. “Unless Nigeria ends crude oil theft and assets’ vandalism, the country’s economy will continue to wobble, at least in the short to medium term,” he concluded.

Still, PENGASSAN believes Nigeria is moving in the right direction. The current drop in petrol prices shows that the market responds well when reforms are in place. A liberalised energy sector—where many players can compete fairly—makes fuel more affordable and strengthens energy security.

But reforms alone are not enough. The union is asking the government to protect oil infrastructure and stop the looting of national assets. Without security, no amount of economic policy will keep petrol prices low for long.

PENGASSAN also pointed out that foreign exchange stability is a major reason why things are improving. When the naira holds steady, it becomes easier for marketers to plan, trade, and deliver fuel at fair prices. The government’s policy moves in this direction are beginning to pay off, but more effort is needed to maintain this balance.

Meanwhile, the increasing activity at local refineries is a huge plus. Nigeria has long relied on fuel imports despite being a major oil-producing country. But now, things are starting to change. Local refineries are coming back to life, and this reduces dependence on foreign products.

For instance, the Dangote Refinery, with its enormous capacity, is expected to meet a large part of the country’s fuel needs once it’s fully operational. This could mean more consistent supply, lower prices, and better control of the fuel chain.

As petrol prices drop, citizens feel the benefit directly. Transport costs fall. Businesses can lower their expenses. Families save more. And perhaps most importantly, people start to believe that positive change is possible.

But PENGASSAN’s message remains grounded. The union is not celebrating blindly. They’re calling for serious action. Protect the pipelines. Stop oil theft. Keep refining local. And continue stabilizing the naira.

Their message is clear: Nigeria can win this battle. But only if it doesn’t relax too early.

The union’s position supports ongoing national conversations about how to keep fuel prices steady without hurting the economy. It’s a delicate balance. But it’s also a rare moment of hope.

As the price at the pump continues to drop, the question is not just how long it will last—but what the country will do to keep it that way.