Tuesday, January 28, 2025 - The reduction in the global prices of crude may lead to a drop in the prices of premium motor spirit in Nigeria
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.
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.
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 said
The Chief Executive Officer of the Centre for the Promotion of Private
Enterprise earlier projected 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.
0 Comments