The price of Premium Motor Spirit (petrol) may decrease further if crude oil prices continue to drop. This development is also expected to be influenced by the stability of the naira against the dollar in the foreign exchange market.
Oil prices fell by about two percent to a 12-week low, with Brent futures settling at $71.62 a barrel and the United States West Texas Intermediate crude settling at $68.37. This decline in crude oil prices, combined with the exchange rate stability, may lead to a reduction in petrol prices.
Players in the Nigerian downstream oil sector have emphasized that crude oil prices and exchange rates are the primary determinants of refined petroleum product costs.
Recently, the Dangote refinery reduced its ex-depot PMS price from N890 per liter to N825, followed by the Nigerian National Petroleum Company Limited matching Dangote’s price.
Source: Punch
