Osamagbe Imadiyi
Oil marketers and industry analysts warned on Wednesday that the pump price of Premium Motor Spirit (petrol) could drop even further to around N800 per litre in the upcoming weeks or months due to the decline in crude oil prices and the reinstatement of the naira-for-crude agreement for local refiners.
The Dangote Petroleum Refinery made its second decrease in less than seven days when it lowered the ex-depot price of PMS to N835 per litre. However, industry participants noted that if crude continue to decline to $50 per barrel and marketers rely less on foreign exchange to purchase goods, the N800 per litre price could be reached. On Wednesday, Brent, the world’s benchmark for crude oil, was trading at roughly $65 per barrel.
On Wednesday, the Dangote refinery further reduced the price of its refined products, bringing the ex-depot rate for gasoline down to N835 per liter. The new price is N45 less than the N880 per litre that the facility sold last Wednesday and N30 less than the N865 per litre that was put into effect six days ago, representing a 3.5% decrease.
Anthony Chiejina, the Group’s Chief Branding and Communications Officer, confirmed this in a statement, saying the refinery lowered its gantry price to reaffirm its dedication to offering premium gasoline at competitive prices, which will benefit consumers all over the country. It said that fees levied by the Nigerian Midstream and Downstream Petroleum Regulatory Authority are included in the new price.
