Fuel Prices Set to Drop as Global Crude Oil Costs Decline

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Nigerian premium motor spirit prices may decline as a result of the decline in the price of crude oil globally.
The Major Energies Marketers Association of Nigeria announced over the weekend that the on-spot estimated import parity of gasoline into tanks was N922.65 per litre, which is N21 less than the N943.75 per litre indicated on Thursday.

The benchmark price of Brent crude was $78.29 per barrel, down from $78.88 per barrel the day before, with an exchange rate of N1,550 per dollar, according to the MEMAN’s statistics.

According to checks by our correspondence on Monday, the price of Brent crude dropped from almost $81 per barrel last week to $78.01 per barrel at 8:11 a.m.

Just one week has passed since Dangote Refinery announced a 6.17 percent ex-depot pricing increase. The increase was ascribed by the corporation to rising crude oil prices worldwide.

Remember how Dangote Refinery raised the price of its gantry from N899.50 to N950 a liter? As a result, the retail price of gasoline at Dangote Refinery’s affiliated filling stations increased to N970 per liter.

In keeping with the patterns, industry participants who spoke anonymously about the development on Monday stated that local gas prices may drop in the days ahead due to the present decline in crude oil prices following Donald Trump’s election to the US presidency.

“If the global price of crude continues to drop as reflected this week, it is likely to impact the local prices of petrol.

“Refineries and marketers would reduce prices to reflect the global price, the same way they increased local fuel prices when the global crude price rose to above $81 per barrel,” a source told newsmen.

Trump’s administration may result in an increase in crude supply, which would lower global crude prices and, in turn, lower local gasoline costs, the CEO of the Center for the Promotion of Private Enterprise previously told our correspondence.

This implies that Dangote Refinery, the Nigerian National Petroleum Company Limited, and marketers could have to cut gasoline prices in order to survive in the cutthroat, deregulated oil and gas market if the price of crude keeps falling.

At the moment, petrol prices in Nigeria range from N965 to N1,150 per litre.


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