Marketers of refined petroleum products have suggested that petrol and diesel prices could decrease as crude oil prices experience another slump. However, industry insiders warn that this price drop may not be immediate, as it depends on the stability of the new lower prices.
Crude oil prices fell below $60 per barrel over the weekend, after hovering around $65 on Friday. On Monday, Brent crude was trading at $59.80 per barrel, while West Texas Intermediate (WTI) was priced at $56.71 per barrel, according to oilprice.com.
In Nigeria, the Brass River and Qua Iboe crudes were priced at $64.60 per barrel, significantly lower than the $75 per barrel estimated in the 2025 budget revenue projections. This price drop has raised concerns about the feasibility of the 2025 budget, as it negatively impacts the Federal Government’s revenue.
Although the fall in crude prices has created hope among Nigerians that fuel prices may soon decrease, marketers caution that a price reduction at the pump may take time. Crude oil prices and the foreign exchange rate are the primary factors influencing the cost of refined products.
In an interview with The PUNCH, Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, stated that oil speculators would closely monitor the cause of the price drop and its stability before making any pricing adjustments.
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