Hope for Lower Petrol Pump Rates As Trump's Decision Crashes Crude Oil Prices
- Global crude benchmarks Brent crude oil and West Texas Intermediate fell up to 10%
- This follows a decision by Donald Trump to pause planned strikes on Iran, easing tensions
- Dangote refinery and other marketers will now have to ensure consumers benefit from lower global oil prices
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, the stock market, and broader market trends.
Global crude oil prices have dropped sharply, raising expectations of lower petrol prices in Nigeria.
Source: Getty Images
Crude oil prices drop
International benchmark Brent crude oil and West Texas Intermediate futures fell by as much as 10% after former US President Donald Trump announced a pause in planned military strikes on Iranian energy infrastructure following what he described as “very good and productive” talks with Iran.
Brent crude dropped to about $98 per barrel before rebounding to around $104, while WTI fell to roughly $91 per barrel, reflecting easing geopolitical tensions.
The decline has sparked calls from Nigerians for immediate reductions in pump prices.
Depot owners slash petrol price
There are signs petrol prices could drop at filling stations as depot owners, including Bovas, A.A. Rano, and Sahara in Lagos, slash ex-depot rates to about N1,270 per litre,
This places depot prices slightly below Dangote Refinery’s current ex-depot rate of N1,275 per litre, highlighting the urgency driving these adjustments.
The trend is not limited to Lagos. In Calabar, depots such as Alkanes and Soroman have also aligned with the N1,270 benchmark, suggesting that the price cuts are spreading nationwide as traders respond to the same market signals.
Source: Twitter
Petrol price in Nigeria
Despite crude prices falling from about $113 to near $99 per barrel, domestic fuel prices have remained high.
Data indicates that the price of Premium Motor Spirit (PMS) surged from N799 to about N1,275 per litre within a short period, marking an increase of roughly 60%. Automotive Gas Oil (diesel) also climbed steeply from N880 to about N1,750 per litre.
Although depot prices have shown slight declines, marketers have yet to pass on the relief to consumers. Some filling stations are reflecting minimal response to the global price drop.
Petroluemprice.ng reports that petrol marketers attributed the delay to concerns over potential losses on existing stock.
The source said:
“Prices rose quickly when crude increased, but now that prices are falling, marketers are being cautious.”
Meanwhile, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria said pricing dynamics should largely follow supply and demand under Nigeria’s deregulated downstream sector.
NNPC announces new petrol prices
Earlier, Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) has increased petrol prices across its retail outlets, raising pump prices in Lagos from N1,230 to N1,330 per litre.
In Abuja, the price rose from N1,260 to N1,361 per litre, reflecting a fresh adjustment amid rising crude oil costs and supply pressures.
It also showed new prices in other parts of the country, including N1,335 per litre in Anambra and N1,330 per litre in Borno.
Source: Legit.ng
