Global Crude Drop Signals Lower Fuel Prices Ahead

According to sources, 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.

The price of Brent crude dropped from above $81 last week to $78.01 per barrel at 8:11 a.m. on Monday, according to checks.

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.

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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 line with the trends, industrial stakeholders, who commented on the development on Monday in anonymity, said the current lower prices in crude oil upon the coming of Donald Trump’s presidency in the United States may push local petrol prices down in the coming days.

Local gasoline prices are probably going to be impacted if the worldwide price of crude oil keeps declining, as it has this week.

According to a source, “In the same way that they raised local fuel prices when the global crude price rose to above $81 per barrel, refineries and marketers would lower prices to reflect the global price.”
Trump’s administration may result in an increase in the supply of crude oil, which would lower global crude prices and, in turn, lower local gasoline prices, according to the CEO of the Center for the Promotion of Private Enterprise.

This means that if the price of crude continues to lower, Dangote Refinery, the Nigerian National Petroleum Company Limited, and marketers may be forced to lower petrol prices to survive the competitive deregulated oil and gas market.

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