Falling crude oil prices and the resumption of the naira-for-crude arrangement for local refiners could push Nigeria’s petrol pump prices down to about N800 per liter in the coming weeks or months, according to oil marketers and industry analysts.
This development comes as the Dangote Petroleum Refinery reduced its ex-depot price for Premium Motor Spirit (PMS) to N835 per liter, its second downward adjustment in less than seven days. Industry players noted that the N800 per liter price could be achieved if crude drops further to $50 per barrel and marketers depend less on foreign exchange to buy products. Brent crude, the global benchmark, was trading at about $65 per barrel on Wednesday.
The new ex-depot price represents a N30 reduction from N865 per liter implemented six days ago, marking a 3.5 percent decrease, and a N45 reduction from the N880 per liter sold by the facility last Wednesday. This marks Dangote’s third downward price adjustment in six weeks.
Anthony Chiejina, the Group’s Chief Branding and Communications Officer, confirmed that the refinery reduced its gantry price to reaffirm its commitment to providing high-quality petrol at affordable rates. The statement added that Dangote’s partners, including MRS, AP (Ardova), Heyden, Optima Energy, Hyde, and Tecno Oil, will sell products between N890 and N920.
Oil and gas expert Olatide Jeremiah observed that “The crude oil decline and renewal of naira-for-crude policy is a double-edged advantage for Nigerians, as pump price may hit N700/liter soon.” He noted that today’s price decline has triggered a price war between Dangote and private depot owners.
Source: punchng.com
