The escalated prices of premium motor spirit in the Nigerian retail market are expected to cool off following the easing of global crude oil prices.
The Independent Petroleum Marketers Association of Nigeria gave this assurance to DAILY POST in an interview on Wednesday.
With the ceasefire agreement by Israel and Iran as advanced by the United States of America President Donald Trump, global oil prices have eased after twelve days of boom when they rose to around $79 and $76 per barrel for Brent and West Texas Intermediate crude futures.
However, as of Wednesday morning, Brent and WTI futures had dropped to $68.14 and $65.38 per barrel.
DAILY POST reports that Dangote Refinery, petroleum products depot owners, Nigerian National Petroleum Company Limited, and petroleum products marketers alike, significantly increased their prices, respectively, in the last twelve days.
Dangote Refinery increased its petrol ex-depot price to N880 per litre from N825 per litre.
Consequently, Dangote Refinery retail partner, MRS filling station hiked the retail price to between N925 and N945 per litre in Lagos and Abuja from N875 and N895.
NNPC, NIPCO, Ranoil, AA Rano, Empire Energy, Eterna, and other filling stations increased their prices to between N945 and N975 per litre in their Abuja outlets.
Meanwhile, with a drop in global oil prices, the domestic crude oil price is expected to fall.
Reacting, the spokesperson of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said that the price of petrol will inadvertently drop with the easing of crude oil prices.
“As the global oil prices go down, the domestic price of petrol would also go down.
“This is because the cost of production would reduce. The same with the exchange rate at the foreign exchange market. The price of petrol would inadevertly drop”, he told DAILY POST.
Ukadike noted petrol price fluctuations are the key features of a deregulated oil downstream sector.
He urged the Nigerian government to create an energy bank where petroleum sector stakeholders can access credits to serve as buffers amid disruptions.