Fresh hope of cheaper petrol is emerging for millions of Nigerians as energy experts predict that the pump price of Premium Motor Spirit (PMS) could decline to around N1,000 per litre in the coming weeks. This follows a sharp drop in global crude oil prices and a fresh price cut by Dangote Petroleum Refinery.
Dangote's Price Slash Sparks New Expectations
The optimism comes after Dangote Refinery announced a N75 reduction in its ex-depot petrol price, reinforcing expectations that marketers may soon lower prices across the country. The latest price cut by the refinery has intensified competition in Nigeria's downstream oil sector and strengthened projections that the era of petrol selling above N1,200 per litre may gradually fade if current market conditions persist.
Industry observers say the reduction reflects improving fundamentals in the international oil market, particularly after easing tensions in the Middle East and renewed hopes of a peace deal between the United States and Iran. The anticipated agreement has reduced fears of supply disruptions through the Strait of Hormuz, one of the world's most important oil shipping routes, causing crude prices to retreat from recent highs.
Crude Oil Falls, Opens Room for Cheaper Petrol
Since the peace announcement by US President Donald Trump over the weekend, crude oil prices have slipped significantly. Brent crude, Nigeria's oil benchmark, fell to around $83 per barrel, while West Texas Intermediate (WTI) traded near $80 per barrel. The decline has prompted analysts to forecast a further reduction in local petrol prices.
According to market experts, if crude prices remain around current levels or fall further, petrol could trade at about N1,000 per litre, with some analysts even suggesting that prices below that mark are achievable.
Expensive Crude Stock May Delay Bigger Cuts
However, industry insiders caution that price reductions may not happen overnight. Sources familiar with operations at Dangote Refinery disclosed that the company is still processing substantial volumes of crude oil purchased when prices were significantly higher.
"Yes, N900 per litre petrol is possible if oil prices stabilise at lower levels, but there is still expensive crude stock in our tanks," a source said. Another official noted that future pricing decisions would depend largely on the direction of international crude prices and the successful implementation of any US-Iran peace agreement.
Marketers Adopt a Wait-and-See Strategy
The expectation of cheaper fuel is already reshaping market behaviour. Many independent marketers have reportedly slowed fresh purchases of petrol and diesel, preferring to wait for another round of ex-depot price reductions rather than stockpile products at current rates.
Analysts believe that if global oil prices continue to weaken and Dangote sustains its aggressive pricing strategy, Nigerians could soon witness another major decline in petrol prices, bringing much-needed relief to households and businesses struggling with rising transportation and energy costs.
Dangote Refinery Takes a Major Decision on Fuel Prices
Legit.ng earlier reported that fresh hopes of lower fuel prices are rising across Nigeria as expectations of a possible United States-Iran agreement continue to push global crude oil prices downward. Industry sources have revealed that Dangote Petroleum Refinery may soon review its ex-gantry fuel prices if the decline in international oil prices continues in the coming days. The development has already triggered anxiety and anticipation in the downstream market, with many marketers reportedly delaying fresh fuel purchases in expectation of a major price reduction.
