The reduction in the global prices of crude may lead to a drop in the prices of premium motor spirit in Nigeria.
This comes as the Major Energies Marketers Association of
Nigeria at the weekend revealed that the on-spot estimated import parity of
petrol into tanks was N922.65 per litre, a reduction of N21 from the N943.75
per litre quoted on Thursday.
The MEMAN’s data also noted that the price of Brent crude
was benchmarked at $78.29 per barrel, down from $78.88 per barrel the previous
day, with an exchange rate of N1,550 per dollar.
Checks on Monday showed that the global price of Brent crude
at 8:11 am stands at $78.01 per barrel, down from over $81 last week.
The development comes barely a week after Dangote Refinery
announced a 6.17 percent ex-depot price hike. The company had attributed the
hike to increased global crude oil prices.
Recall that Dangote Refinery had increased its gantry price
to N950 per litre from N899.50. This resulted in an increase of the retail
price of petrol to N970 per litre in Dangote Refinery’s partnering filling
stations.
In line with the trends, industrial stakeholders, who
commented on the development on Monday in anonymity, said the current lower
prices in crude oil upon the coming of Donald Trump’s presidency in the United
States may push local petrol prices down in the coming days.
“If the global price of crude continues to drop as reflected
this week, it is likely to impact the local prices of petrol.
“Refineries and marketers would reduce prices to reflect the
global price, the same way they increased local fuel prices when the global
crude price rose to above $81 per barrel,” a source disclosed.
The Chief Executive Officer of the Centre for the Promotion
of Private Enterprise earlier disclosed that Trump’s presidency may lead to an
increase in crude supply, which would result in a drop in global crude prices
and thereafter a drop in local petrol prices.
This means that if the price of crude continues to lower,
Dangote Refinery, the Nigerian National Petroleum Company Limited, and
marketers may be forced to lower petrol prices to survive the competitive
deregulated oil and gas market.
Currently Nigerians buy petrol between N965 per litre and
N1,150 nationwide.
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