According to sources, premium motor spirit prices in Nigeria may decline as a result of the decline in oil prices globally.
This comes after 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 MEMAN’s data also showed that, 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 Monday’s checks, the price of Brent crude dropped from nearly $81 per barrel last week to $78.01 per barrel at 8:11 a.m.
Dangote Refinery announced a 6.17 percent ex-depot price increase just a week prior to this development. The corporation blamed the increase on rising crude oil prices worldwide.
Remember how Dangote Refinery charged N950 a liter instead of N899.50 for their gantry? This led to the retail price of gasoline at Dangote Refinery’s partner filling stations going up to N970 per liter.
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According to the trends, industry participants who spoke anonymously about the development on Monday stated that local gas 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.
“The local cost of gasoline is probably going to be affected if the worldwide price of crude oil keeps declining, as it has this week.
When the price of crude oil soared to more than $81 per barrel globally, “refineries and marketers would lower prices to reflect the global price, the same way they increased local fuel prices,” a source said.
Trump’s administration may result in a surge in the supply of crude oil, which would lower the price of crude oil globally and, in turn, lower the price of gasoline locally, according to the CEO of the Center for the Promotion of Private Enterprise.
The Nigerian National Petroleum Company Limited, Dangote Refinery, and marketers may be compelled to reduce gasoline prices in order to survive in the cutthroat, deregulated oil and gas market if the price of crude continues to decline.
Nigerians currently spend between N965 and N1,150 per liter on gasoline.
