 has projected that the cost of Premium Motor Spirit (PMS),could drop to N400){kind=link}
The Crude Oil Refinery Owners Association of Nigeria (CORAN) has projected that the cost of Premium Motor Spirit (PMS), commonly known as petrol, could drop to under N400 per litre following the recent sharp decline in global crude oil prices.
According to CORAN, if the price of crude eventually falls to around $50 per barrel, petrol should logically sell for about N350 per litre.
However, the association expressed concern that despite the drop in crude prices and reduced landing costs, fuel prices may continue to rise if the Federal Government discontinues its naira-for-crude initiative.
Recent developments in the international oil market have triggered a significant dip in prices.
Brent crude fell to $65 per barrel for the first time since 2021, driven by a combination of factors including new U.S. import tariffs and an unexpected decision by the OPEC+ alliance to increase supply.
The market had initially seen a slight boost after the U.S. government, under President Donald Trump, imposed tariffs on countries purchasing oil from Venezuela. However, the momentum quickly reversed.
Reports from oilprice.com highlighted that these geopolitical tensions—coupled with retaliatory tariffs from China and expanded OPEC+ output plans—caused global oil prices to drop by $10 per barrel.
As of Friday, West Texas Intermediate crude settled at $61.99 per barrel after a 7.4 percent loss.
In response to the U.S. tariffs, China announced a 34 percent additional duty on all American goods starting April 10, intensifying the trade war and raising fears of a global economic slowdown.
This, combined with OPEC and its allies’ move to accelerate production by returning over 400,000 barrels per day to the market in May, further pressured prices downward.
Despite the drop in landing cost, data from the Major Energies Marketers Association of Nigeria showed that the domestic ex-depot price of petrol rose from N860 to N900 per litre in Lagos, suggesting that local pricing has not yet adjusted to global trends.
Meanwhile, the landing cost declined slightly from N885 to N865 within the same period.
Eche Idoko, CORAN’s Publicity Secretary, in an interview, voiced concerns over the disconnect between international crude prices and local fuel costs.
He stressed that the continued depreciation of the naira is worsening the situation. Idoko emphasized that the naira-for-crude policy had played a crucial role in stabilizing fuel prices and ensuring energy security.
Before the policy was paused, he said, petrol prices were on track to hit N700 per litre.
He further criticized certain actors within the petroleum supply chain who, he claimed, are resistant to local refining efforts and continue to support the importation of low-quality fuel.
According to him, some intermediaries oppose the naira-for-crude system because it threatens their profits and influence in the fuel import business.