Good News For Nigerians! Petrol Prices Set To Drop Further As Global Oil Prices Fall Full Details

Petrol Prices May Continue to Drop as Global Oil Market Weakens

The cost of Premium Motor Spirit (PMS), commonly known as petrol, could see further reductions if the current decline in global crude oil prices persists.....KINDLY READ THE FULL STORY HERE▶

Key Factors Driving Price Drops

Economic analysts highlight that the stability of the naira against the dollar in the foreign exchange market is another crucial factor that could reinforce the downward trend in petrol prices across Nigeria.

This week, crude oil prices fell by approximately 2%, marking their lowest levels in 12 weeks, following reports that OPEC+ will proceed with a planned increase in oil output by April.

• Brent crude dropped by $1.19 (1.6%), settling at $71.62 per barrel.
• West Texas Intermediate (WTI) crude declined by $1.39 (2%), closing at $68.37 per barrel.

According to Reuters, these prices represent the lowest levels since December 2024. The dip follows confirmation that the Organisation of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+), including Russia, will move forward with increasing oil production.

Downstream Sector Reacts to Price Cuts

In Nigeria, industry players have consistently stated that crude oil prices and forex rates directly influence the pump price of petrol.

Last week, Dangote Refinery slashed its ex-depot price of petrol from ₦890 per litre to ₦825 per litre. In response, the Nigerian National Petroleum Company Limited (NNPC) also reduced its pricing, sparking what many experts have termed a “price war” in the fuel market.

Further Reductions Expected?

Economic analyst Paul Alaje believes that petrol prices could drop below ₦700 per litre if the current market trends persist.

“It is possible to bring petrol prices down to ₦700 per litre based on the present exchange rate situation. However, a major global crisis could push crude oil prices back up. For now, we are witnessing relative stability,” Alaje stated in an interview with Channels Television.

“Our calculations suggest that the current PMS price should range between ₦795 and ₦820 per litre.”

As global crude prices continue to fluctuate, Nigerians may experience further relief at the pump, provided the current market conditions remain steady.

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