The reduction in the global prices of crude may lead to a drop in the prices of premium motor spirit in Nigeria, Arogidigba Global Journal reports.
This comes as the Major Energies Marketers Association of Nigeria at the weekend revealed that the on-spot estimated import parity of petrol into tanks was N922.65 per litre, a reduction of N21 from the N943.75 per litre quoted on Thursday.
The MEMAN’s data also noted that the price of Brent crude was benchmarked at $78.29 per barrel, down from $78.88 per barrel the previous day, with an exchange rate of N1,550 per dollar.
Checks by Arogidigba Global Journal on Monday showed that the global price of Brent crude at 8:11 am stands at $78.01 per barrel, down from over $81 last week.
The development comes barely a week after Dangote Refinery announced a 6.17 percent ex-depot price hike. The company had attributed the hike to increased global crude oil prices.
Recall that Dangote Refinery had increased its gantry price to N950 per litre from N899.50. This resulted in an increase of the retail price of petrol to N970 per litre in Dangote Refinery’s partnering filling stations.
https://dailypost.ng/2025/01/18/fuel-price-increases-to-n1150-per-litre-after
In line with the trends, industrial stakeholders, who commented on the development on Monday in anonymity, said the current lower prices in crude oil upon the coming of Donald Trump’s presidency in the United States may push local petrol prices down in the coming days.
“If the global price of crude continues to drop as reflected this week, it is likely to impact the local prices of petrol.
“Refineries and marketers would reduce prices to reflect the global price, the same way they increased local fuel prices when the global crude price rose to above $81 per barrel,” a source told Arogidigba Global Journal.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise earlier told Arogidigba Global Journal that Trump’s presidency may lead to an increase in crude supply, which would result in a drop in global crude prices and thereafter a drop in local petrol prices.
This means that if the price of crude continues to lower, Dangote Refinery, the Nigerian National Petroleum Company Limited, and marketers may be forced to lower petrol prices to survive the competitive deregulated oil and gas market.
Currently Nigerians buy petrol between N965 per litre and N1,150 nationwide.