BENIN CITY – Consumers and traders in Benin City have described the recent drop in palm oil prices as a “fragile relief,” warning that unstable supply, transport costs and inflationary pressures could trigger another round of price increases.
At Oba, New Benin and Uselu markets, a litre of palm oil, which previously sold between ₦1,500 and ₦1,600, now goes for about ₦1,200 to ₦1,300 across several outlets.
Despite the reduction, residents said the commodity remains expensive for many households, particularly low-income earners, stressing that the decline has not significantly eased economic hardship.
Traders attributed the temporary price drop to improved supplies from producing communities in the South-South and South-East, as well as better fuel availability which slightly reduced transportation costs.
At New Benin Market, trader Joy Fulani said patronage had improved slightly following the reduction.
“Earlier, we sold a litre for ₦1,500 to ₦1,600. Now it is between ₦1,200 and ₦1,300,” she said.
A wholesaler, Mr Ike Osinachi, described the trend as unstable, noting that prices fluctuate with supply.
“When supply improves, prices reduce, but once supply drops, everything increases again. There is still no stability,” he said.
Transport operator, Mr Peter Asen, said fluctuating fuel and diesel prices continue to drive food inflation nationwide.
“Every additional transport cost eventually reflects directly in final market prices,” he said.
Residents and market leaders called on government to improve rural infrastructure, boost local palm production and stabilise transport costs to sustain price reductions, adding that broader economic reforms are needed to ease cost-of-living pressures.
