Petrol Prices to Keep Falling Until Mid-Year, Rewane Predicts
The Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, has predicted that the price of Premium Motor Spirit (petrol) will continue to decline until June 2025.
Both Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) have significantly reduced fuel prices in recent weeks, alleviating financial pressure on millions of Nigerians who depend on petrol for their energy needs.
However, Rewane has stated that the downward trend in fuel prices is expected to persist until mid-year.
“Between now and June, we will see prices continue to decline. However, after June, as the market stabilises, prices may become steady, depending on global oil prices and currency fluctuations,” Rewane said on Tuesday during Channels Television’s Business Morning programme monitored in Lagos.
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He noted that the price competition between Dangote Refinery and NNPCL is ultimately beneficial to consumers.
“In a price war, there are no winners, except for consumers in the short term. Eventually, the market will settle at a sustainable price. By June, we will likely see a clear price leader emerge,” he explained.
Rewane attributed Dangote Refinery’s recent price cuts to improved production efficiency, among other factors.
The Dangote Refinery recently reduced its gantry price from ₦890 to ₦825 per litre and has promised refunds to customers who previously purchased fuel at higher prices from its partner stations.
“For MRS Holdings stations, fuel will be sold at ₦860 per litre in Lagos, ₦870 per litre in the South-West, ₦880 per litre in the North, and ₦890 per litre in the South-South and South-East,” the company stated.
Similarly, NNPCL also lowered its pump price to ₦860 per litre across its Lagos outlets on Monday, although an official statement on the matter is yet to be released.
