Petrol Prices May Decline Further as Crude Oil Hits 12-Week Low, Naira Remains Stable, and OPEC+ Confirms April Output Increase
The price of Premium Motor Spirit (PMS), commonly known as petrol, may decline further if crude oil prices continue to slide and the naira remains stable in the foreign exchange market.
Oil prices dropped by about 2% this week, hitting a 12-week low, as OPEC+ confirmed plans to proceed with an oil output increase in April. Brent crude settled at $71.62 per barrel, while West Texas Intermediate (WTI) fell to $68.37, marking their lowest levels since early December.
In response to market trends, the Dangote refinery recently reduced its ex-depot petrol price from ₦890 to ₦825 per litre, prompting the Nigerian National Petroleum Company Limited (NNPCL) to match the new rate. Experts suggest the price could drop below ₦700 per litre if current exchange rates and crude oil trends persist.
However, analysts warn that any global crisis pushing crude prices higher could reverse this trend. The Nigerian government had projected an oil price benchmark of $74 per barrel for the 2025 budget, but the recent decline suggests that fuel prices could become more affordable for consumers in the short term.
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