Reduced Pump Price | N800 per Litre Petrol Possible as Crude Oil Prices Fall and Naira-for-Crude Arrangement Resumes

A potential reduction in the pump price of Premium Motor Spirit (PMS) to around N800 per litre is now on the horizon, according to oil marketers and industry analysts. This anticipated price drop comes as a result of the recent decline in crude oil prices, as well as the resumption of the naira-for-crude arrangement for local refiners, which may ease pressure on fuel pricing in the coming weeks or months.

On Wednesday, it was reported that the Dangote Petroleum Refinery had reduced its ex-depot price for PMS to N835 per litre, marking its second downward price adjustment in less than a week. The move is seen as a reflection of the ongoing global oil price fluctuations and the local refiners’ efforts to bring down fuel costs.

Industry insiders suggest that the N800 per litre price could become a reality if crude oil prices continue to drop, potentially reaching $50 per barrel. Additionally, a reduction in marketers’ reliance on foreign exchange for purchasing refined products could help drive further reductions in fuel prices. As of Wednesday, Brent crude, the global benchmark for oil, was priced at approximately $65 per barrel, fueling expectations that domestic fuel prices could fall even further if the trend continues.

While the prospect of cheaper petrol offers some relief to consumers, the timeline and actual price adjustments will depend on the global oil market and currency fluctuations. However, many are hopeful that this trend will result in more affordable fuel prices for Nigerians in the near future.