Breaking News: CORAN Reveals Petrol Prices Could Fall To ₦350

CORAN explained that if crude oil prices continue to decline and reach $50 per barrel, petrol prices could potentially fall to ₦350 per litre. However, the association raised concerns that despite the decline in crude oil prices and the reduction in landing costs, petrol prices in Nigeria might still increase.

The association warned that without the continuation of the Nigerian government’s Naira-for-crude deal, petrol prices may remain elevated even as crude prices drop further.

Global crude oil prices have taken a sharp downturn, with the benchmark falling to $65 per barrel last week, marking the lowest level since 2021. The decline is attributed to several factors, including U.S. President’s tariffs on crude imports from Venezuela, and a decision by OPEC+ to increase oil output, which has driven prices down by $10 per barrel.

Oilprice.com noted that the combination of U.S. tariffs, increased OPEC+ production, and retaliatory measures from China has contributed to the current slump in oil prices.

As of Friday, ICE Brent crude was below $65 per barrel, while U.S. West Texas Intermediate crude futures dropped by $4.96, or 7.4%, closing at $61.99.

Despite the drop in global prices, the Nigerian market has yet to reflect this shift, CORAN noted. A recent bulletin from the Major Energy Marketers Association of Nigeria (MEMAN) reported a drop in the landing cost of petrol from ₦885 per litre to ₦865 as of Saturday. However, the ex-depot price of petrol in Lagos rose from ₦860 to ₦900 per litre, highlighting the failure of the local market to adjust to the declining global oil prices.

In an interview with Punch, CORAN’s Publicity Secretary, Eche Idoko, expressed concern over the rising petrol prices in Nigeria despite the global reduction in crude prices. He argued that the Naira-for-crude policy, aimed at ensuring energy security and stabilizing the naira, is under threat from certain individuals who oppose local refining initiatives.

Idoko accused middlemen of undermining the success of local refineries and hindering the Naira-for-crude deal, which he views as crucial for stabilizing both the energy sector and the naira. He emphasized the need for continued government support of the Naira-for-crude policy to prevent further fuel price instability and ensure Nigeria’s energy needs are met without relying on imported substandard petroleum products.

According to Idoko, before the discontinuation of the Naira-for-crude deal, petrol prices were on track to fall to as low as ₦700 per litre. He further stated, “If crude drops to $50, petrol prices could reach ₦350. Unfortunately, middlemen who profit from price fixes and do not have an investment in the business are preventing the success of local refining.”