Petrol prices expected to drop as crude oil per barrel crash in international market
Petrol prices expected to drop as crude oil per barrel drops in international market
Nigerians may soon experience a reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, as the price of Brent crude has dipped to $65 per barrel, down from $69.90 per barrel in the global market.
Brent crude, the benchmark for global oil prices, plays a significant role in determining the cost of petroleum products worldwide.
The recent price drop is attributed to several key factors, including the announcement by U.S. President Donald Trump of sweeping new tariffs, which has affected global trade dynamics.
Additionally, a major contributor to the price change comes from the decision of the Organisation of Petroleum Exporting Countries (OPEC) and its allies to increase oil production. Starting in May 2025, they plan to ramp up output by 410,000 barrels per day, a significant increase from the previously planned 135,000 barrels.
In response to these changes, depot prices have already seen a reduction. For instance, Mainland, A.Y.M, and Ever depots have lowered their prices to N918, N919, and N912 per litre, respectively, down from N920, N920, and N913 per litre. Similarly, Prudent, Eterna, and Soroman depots have adjusted their prices to N897, N915, and N912 per litre, respectively, from their previous rates.
According to petroleumprice.ng, oil marketers are expected to lower their pump prices in line with these depot price reductions as they receive new supplies this week, assuming the current market trends persist.
In an interview with Sunday Vanguard, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), expressed optimism that the ongoing developments could lead to lower costs for transportation, goods, and services, benefiting Nigerians across the country.
Meanwhile, in a report, OPEC stated: “The eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually on 3 April 2025, to review global market conditions and outlook.
“In view of the continuing healthy market fundamentals and the positive market outlook, and in accordance with the decision agreed upon on 5 December 2024, subsequently reaffirmed on 3 March 2025, to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from 1 April 2025, the eight participating countries will implement a production adjustment of 411 thousand barrels per day, equivalent to three monthly increments, in May 2025.
“This comprises the increment originally planned for May in addition to two monthly increments. The gradual increases may be paused or reversed subject to evolving market conditions. This flexibility will allow the group to continue to support oil market stability. The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation.
“The eight countries reaffirmed their commitment to the voluntary production adjustments agreed at the 53rd Joint Ministerial Monitoring Committee, JMMC meeting on 3 April 2024. They also confirmed their intention to fully compensate any overproduced volume since January 2024 and to submit updated front-loaded compensation plans to the OPEC Secretariat by 15 April 2025.”
