Nigerians are set to enjoy a reduction in petrol prices following a drop in global oil prices. The price of Brent crude oil has decreased to $65 per barrel from $69.90, which is expected to lead to lower costs for Premium Motor Spirit (PMS), commonly known as petrol. This development is partly attributed to the Organization of Oil Producing Countries (OPEC) and its allies deciding to increase oil output by 410,000 barrels per day starting in May 2025, significantly higher than the initially planned 135,000 barrels.
Depot owners have already begun to slash prices, with Mainland, A.Y.M, and Ever reducing their prices to N918 per litre from N920, while Prudent, Eterna, and Soroman have lowered theirs to N912, N897, and N915 per litre, respectively. Oil marketers are likely to adjust pump prices downwards as they receive new supplies, assuming market conditions remain stable. This reduction is expected to have a broader impact on the economy, potentially leading to lower fares and costs for goods and services.
However, recent price adjustments by the Nigerian National Petroleum Company Limited (NNPC) have seen petrol prices increase to N925 per litre in Lagos and N950 in Abuja, effective from April 2, 2025. This increase is attributed to various factors, including changes in global oil prices and market competition dynamics. Despite these fluctuations, experts predict that as more local refineries, such as Dangote Refinery, become operational, petrol prices could drop further, potentially reaching around N750 per litre by the end of the year. The ongoing competition between Dangote and NNPC is also driving down prices, benefiting consumers in the short term.
