Nigerians may soon enjoy another reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, as filling station operators and petroleum marketers indicate that prices could gradually decline to around N1,000 per litre if global crude oil prices continue their downward trend.
The anticipated reduction follows a series of price adjustments across the downstream petroleum sector over the past two weeks, driven by falling international crude oil prices and increasing competition among fuel suppliers.
The Nigerian National Petroleum Company Limited (NNPCL) recently reduced its retail petrol price to N1,210 per litre, barely two days after Dangote Refinery lowered its ex-depot (gantry) price to N1,125 per litre, triggering expectations of further reductions across the country.
The latest developments come as global crude oil prices eased significantly following a de-escalation of tensions in the Middle East. Brent crude traded at about $72 per barrel, while West Texas Intermediate (WTI) hovered around $70 per barrel, compared to prices above $100 per barrel recorded during the height of the regional conflict.
A manager at an MRS filling station in Abuja, who spoke on condition of anonymity, disclosed that the retail outlet was preparing to review its pump price downward.
According to the source, the station is expected to reduce its petrol price to between N1,191 and N1,201 per litre within days, depending on supply costs.
The move is expected to intensify competition among marketers as consumers increasingly seek outlets offering the lowest prices.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said further reductions remain possible if international crude prices continue to decline and refiners adjust their pricing accordingly.
READ ALSO: Dangote refinery slashes petrol price again, cuts Gantry rate by N50 to N1,125/litre
He explained that petrol pricing in the deregulated market is largely determined by refiners, importers, depot owners and prevailing market forces.
According to him, marketers are under pressure to remain competitive by offering consumers better prices.
“You see this is coming down gradually. It is possible that the fuel price will drop to N1,000 per litre or even lower if crude oil prices continue to decline and refiners as well as depot owners reduce their prices,” Ukadike said.
He added that the market is currently being driven by the forces of demand and supply rather than government-controlled pricing.
Meanwhile, the Federal Competition and Consumer Protection Commission (FCCPC) has cautioned petroleum marketers against exploiting consumers through excessive pricing despite the decline in international oil prices.
The commission warned that businesses found engaging in profiteering or unfair pricing practices could face regulatory sanctions, amid growing public pressure for fuel prices to reflect the lower cost of crude oil.
Energy analysts say while the recent decline in crude oil prices has created room for lower petrol prices, sustaining reductions will depend on several domestic and international factors.
Oil and gas economist Prof. Dayo Ayoade noted that deregulation has made petrol pricing more responsive to market realities.
“When crude prices fall and the naira remains relatively stable, consumers should naturally benefit through lower pump prices. However, exchange rate volatility, transportation costs, financing expenses and distribution margins will continue to influence the final retail price,” he said.
Similarly, energy consultant Kelvin Emmanuel observed that increased competition between local refiners and fuel importers is beginning to benefit consumers.
“The entrance of Dangote Refinery into the market has fundamentally changed the pricing landscape. With more suppliers competing for market share, price competition is becoming stronger, forcing marketers to pass some savings on to motorists,” he explained.
However, analysts caution that any resurgence in global geopolitical tensions or a sharp depreciation of the naira could reverse the current downward trend.
As of Monday evening, petrol sold for between N1,210 and N1,300 per litre across filling stations in Abuja and neighbouring areas.
Many motorists and transport operators have welcomed the recent reductions but insist that prices should fall further to ease transportation costs and inflationary pressures affecting households and businesses.
Should crude oil prices remain subdued and market competition intensify, industry observers believe Nigerians could witness petrol selling close to the N1,000 per litre mark in the coming weeks, providing much-needed relief after months of elevated fuel costs.