Petrol Prices Crash, Experts Share Insight on New Rates
- Hope rises for lower petrol prices following an 11% drop in global crude oil prices
- The changes come after the reopening of the Strait of Hormuz, although it remains fragile
- Experts have provided insight into the changes and how Nigerians will benefit in the coming weeks
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Petrol prices are expected to decline following a sharp drop in global crude oil prices after the reopening of the Strait of Hormuz.
Source: Getty Images
The development comes after a ceasefire agreement involving the United States, Iran and Israel, which restored confidence in global shipping routes and eased supply disruptions that had driven oil prices higher in recent weeks.
Petrol prices drop
Checks by Petroleumprice.ng across depots nationwide indicated that prices eased by the close of trading on Friday, April 17, as global crude benchmarks declined.
In Lagos, PMS closed at N1,205 per litre at Nipco and N1,206 at Aiteo, while AGO settled at N1,775 per litre at Menj and Duport.
In Calabar, PMS (Soroman) closed at N1,229, with AGO (Fynefield) at N1,855. Port Harcourt recorded PMS at N1,230 (Matrix) and AGO at N1,870 (Matrix).
In Warri, PMS ranged between N1,228 and N1,230, while AGO traded between N1,830 and N1,835 across Nipco, Prudent, Pinnacle, and Nepal.
Expert insight on petrol price changes
Olatide Jeremiah, the Chief Executive Officer of Petroleumprice.ng said crude oil prices had already dropped significantly, noting that prices fell by about 11% following the reopening of the route.
He projected that petrol prices could fall below N1,000 per litre in the coming days but cautioned that marketers might delay passing on the benefits to consumers.
He said:
“Depot and retail prices are likely to decline, but there are concerns that market operators may delay passing on global price reductions locally. Nigerians have endured sustained increases, so any drop should be reflected fairly.”
Similarly, the Petroleum Products Retail Outlets Owners Association of Nigeria said petrol prices could drop from around N1,261 per litre to below N1,000 if current conditions persist.
Its Publicity Secretary, Joseph Obele, expressed optimism that prices could even return to about N900 per litre, recalling that petrol sold around N800 before the crisis escalated earlier in the year.
Obele also urged the Nigerian National Petroleum Company Limited to fast-track the reopening of domestic refineries, including the Port Harcourt facility, to further reduce costs.
He said:
“With the reopening of the Strait of Hormuz, Nigerians should expect a significant reduction in petrol prices. It could drop below N1,000, possibly around N900 per litre, if current conditions are sustained."
Source: Getty Images
Founder of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said the easing of crude prices would likely translate into lower pump prices, though existing stock purchased at higher rates could delay immediate relief.
“We should see the impact within the next few weeks. Even though marketers and oil companies would say that the stock they have has to be exhausted because they bought it at a high price. Oil price is already dropping just today. So if there is no violation of the ceasefire, we should be expecting major relief in terms of pump price."
NNPC announces new petrol prices
Earlier, Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) retail outlets have reduced their Premium Motor Spirit (PMS), also known as petrol.
The changes come three days after the Dangote Refinery reduced its petrol gantry price by N85 to N1,200 per litre, down from N1,285.
Petrol is now selling at N1,255 per litre, down from N1,330, representing a reduction of N75.
Source: Legit.ng
