Fragile relief as palm oil prices drop in Benin

Palm oil consumers and traders across Benin City, Edo State, have described recent price reductions as “a fragile relief”, warning unstable supplies, transportation expenses, and persistent inflationary pressures could trigger another increase.

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A News Agency of Nigeria survey at Oba, New Benin, and Uselu markets showed litre prices recently declined from between N1,500 and N1,600 to approximately N1,200 and N1,300 across several trading outlets.

Despite the reduction, residents and traders maintained that palm oil remained expensive for numerous households, especially low-income earners, emphasising current price changes were insufficient to significantly ease worsening economic hardship.

Respondents attributed the temporary price reduction to increased supplies arriving from producing communities across the South-south and South-east, alongside improved fuel availability that slightly reduced transportation expenses on several distribution routes nationwide.

At New Benin Market, Joy Fulani, a trader, said that patronage improved slightly after reductions.

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“Earlier, we sold a litre for N1,500 to N1,600. Now, it is between N1,200 and N1,300,” she explained.

Ike Osinachi, a wholesaler, attributed reductions mainly to temporary supply increases, warning that instability has persisted.

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“When supply improves, prices reduce, but once supply drops, everything increases again. There is still no stability,” he said.

Peter Asen, a transporter, said that fluctuating petrol and diesel costs remained major contributors to rising food prices nationwide.

“Every additional transport expense eventually reflects directly in final market prices,” he pointed out.

Meanwhile, residents and market leaders have urged authorities to improve rural infrastructure, strengthen local palm production, and stabilise transportation expenses to sustain the declining prices.

They argued that broader economic reforms are necessary if households are to experience relief against living costs.