The Dangote Petroleum Refinery has informed marketers of a reduction in the ex-depot price of premium motor spirit (PMS), commonly known as petrol, from over N930 per litre to N865, in a move that has brought relief to millions of Nigerians.
Data source from petroleumprice.ng showed the new price is N65 reduction from the N930 sold by the refinery earlier this week.
The decrease comes at a time when there’s a downturn in global crude oil prices, particularly Brent crude, which serves as a benchmark for international oil pricing.
Brent crude prices have fallen below $60 per barrel for the first time since February 2021, driven by escalating trade tensions and increased production from the Organisation of Petroleum Exporting Countries (OPEC) members.
Brent crude fell by 5.19 percent to $62.08 per barrel on Wednesday at 3.30pm, with WTI crude at $58.83, a drop of 5.65 percent.
In January 2025, the Energy Information Administration (EIA) had forecast that crude oil prices would fall below an average of $81 to $74 per barrel in 2025 and $66 per barrel in 2026.
“We forecast benchmark Brent crude oil prices will fall from an average of $81 per barrel (b) in 2024 to $74/b in 2025 and $66/b in 2026, as strong global growth in production of petroleum and other liquids and slower demand growth put downward pressure on prices and help offset heightened geopolitical risks and voluntary production restraint from OPEC members,” the report stated.
However, the decrease seems to be coming faster than predicted.
Oil marketers and analysts have projected that fuel prices will continue to reduce and may fall below N400 per litre with the declining global oil prices.
Coupled with the fall in oil prices, the federal government has also resumed the naira-for crude-deal.
The Federal Executive Council (FEC) directed, on Wednesday, the full implementation of the suspended naira-for-crude agreement with local refiners.
The government described the initiative as a ‘key policy directive’ rather than a temporary fix, saying it was designed to ensure sustainable local refining and reduce reliance on imported fuels.
In March, Dangote Refinery had pulled out of the deal with the Nigerian National Petroleum Company (NNPC), citing a mismatch between its crude purchase obligations, priced in US dollars, and sales revenue earned in naira.
