By Okeke Eunice
The decline in global crude oil prices could result in a decrease in the cost of premium motor spirit in Nigeria, according to Honourable Fm.
This follows the announcement by the Major Energy Marketers Association of Nigeria over the weekend, which stated that the current estimated import parity for petrol was N922.65 per litre, a drop of N21 from the N943.75 per litre recorded on Thursday.
MEMAN’s data also highlighted that the price of Brent crude was set at $78.29 per barrel, a decrease from $78.88 the day before, with an exchange rate of N1,550 per dollar.
According to Honourable Fm checks on Monday, the global price of Brent crude was $78.01 per barrel at 8:11 am, down from over $81 the previous week.
This comes just a week after Dangote Refinery implemented a 6.17 percent increase in its ex-depot price, citing rising global crude oil prices as the reason for the hike.
It’s worth noting that Dangote Refinery raised its gantry price from N899.50 to N950 per litre, which led to an increase in the retail price of petrol to N970 per litre at stations partnering with the refinery.
Industrial stakeholders, who spoke on the matter anonymously on Monday, suggested that the recent decline in global crude oil prices, coupled with the arrival of Donald Trump’s presidency in the United States, could lead to a reduction in local petrol prices in the near future.
“If the global price of crude continues to fall as seen this week, it is likely to affect local petrol prices,” one source told Honorable Fm. “Refineries and marketers will lower prices to align with the global price, just as they raised local fuel prices when the global crude price went above $81 per barrel.”
The CEO of the Centre for the Promotion of Private Enterprise had previously stated to a national television that Trump’s presidency could increase crude oil supply, leading to lower global prices, which would then result in a decrease in local petrol prices.
This implies that if crude oil prices keep falling, Dangote Refinery, the Nigerian National Petroleum Company Limited, and fuel marketers may have to reduce petrol prices to remain competitive in the deregulated oil and gas market.
At present, Nigerians are purchasing petrol at prices ranging from N965 per litre to N1,150 across the country.