Global Crude Price Drop May Lower Petrol Costs in Nigeria

The recent reduction in global crude oil prices could signal a drop in the prices of premium motor spirit (PMS) in Nigeria, Newsflash Nigeria reports. This follows data released by the Major Oil Marketers Association of Nigeria (MOMAN), indicating a decline in the on-spot estimated import parity price of petrol. As of the weekend, the import parity price fell to N922.65 per litre, a reduction of N21 from the previous week’s price of N943.75 per litre.

MOMAN’s data also highlighted a marginal drop in Brent crude prices, which are now benchmarked at $78.29 per barrel, compared to $78.88 per barrel the day before, with an exchange rate of N1,550 per dollar. By Monday morning, Brent crude further declined to $78.01 per barrel, marking a continued downward trend from over $81 per barrel recorded last week.

This development comes shortly after Dangote Refinery announced a 6.17% hike in its ex-depot price, increasing it from N899.50 to N950 per litre. The hike had driven the retail price of petrol at Dangote Refinery-affiliated filling stations to N970 per litre.

Market analysts and industry stakeholders believe the recent drop in global crude prices could reverse this upward trend in local fuel prices. A source, speaking anonymously, told *DAILY POST*: “If the global price of crude continues to decline as it has this week, it will likely lead to a reduction in local petrol prices. Refineries and marketers typically adjust prices to reflect changes in global crude prices, just as they raised prices when crude prices exceeded $81 per barrel.”

This view aligns with earlier comments by the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, who noted that increased crude supply—potentially linked to shifts in U.S. policies—could drive global crude prices further down. A lower global crude price would, in turn, reduce local petrol prices, particularly in Nigeria’s deregulated oil and gas market.

Currently, petrol prices in Nigeria range between N965 and N1,150 per litre nationwide. Experts suggest that continued reductions in crude prices could compel key players such as Dangote Refinery, the Nigerian National Petroleum Company Limited (NNPCL), and independent marketers to lower their petrol prices to remain competitive.

The development highlights the direct correlation between global crude oil trends and local petrol prices, offering hope to Nigerians burdened by rising costs. For now, all eyes remain on the global oil market as Nigerians await potential relief at the pumps.

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