Premium motor spirit prices in Nigeria may decline as a result of the decline in oil prices globally, according to reports.
At the weekend, the Major Energies Marketers Association of Nigeria disclosed 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.
With an exchange rate of N1,550 to the dollar, the benchmark price of Brent crude was $78.29 per barrel, down from $78.88 per barrel the day before, according to the MEMAN’s data.
According to checks on Monday at 8:11 a.m., the price of Brent crude dropped from over $81 per barrel last week to $78.01 per barrel globally.
The news follows Dangote Refinery’s announcement of a 6.17 percent ex-depot price increase just a week ago. The business has blamed rising crude oil prices worldwide for the increase.
Remember that the price of gantry at Dangote Refinery was raised from N899.50 to N950 per liter. As a result, the retail price of gasoline at the partnered filling stations of Dangote Refinery was raised to N970 per liter.
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According to industry participants who spoke anonymously about the development on Monday, local gasoline 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.
It is expected to affect local gasoline prices if the worldwide price of crude oil keeps declining, as it has this week.
According to a source, “when the global crude price jumped to over $81 per barrel, refineries and marketers would raise local fuel prices in the same way that they would lower prices to reflect the global price.”
According to the CEO of the Center for the Promotion of Private Enterprise, Trump’s administration might result in more crude being produced, which would lower the price of crude globally and, in turn, lower the price of gasoline locally.
This implies that in order to remain in the cutthroat, deregulated oil and gas market, Dangote Refinery, the Nigerian National Petroleum Company Limited, and marketers could have to reduce the price of gasoline if the price of crude keeps falling.
Across the country, Nigerians currently spend between N965 and N1,150 per liter on gasoline.
