There is a general consensus that fuel prices may drop following the global market reduction in crude oil.
Over the weekend, the Major Energies Marketers Association of Nigeria (MEMAN) stated that the on-spot estimated import parity of petrol into tanks was N922.65 per litre, a reduction of N21 from the N943.75 per litre quoted on Thursday.
The association also stated that with the exchange rate of N1,550 per dollar, the price of Brent crude benchmarked at $78.29 per barrel went down from $78.88 per barrel the previous day.
On Monday, the global price of Brent crude as of 8:11 am stood at $78.01 per barrel, down from over $81 last week. These lower prices come after Dangote Refinery increased its depot price to N950 per litre from N899.50.
Some industry experts are saying the lower fuel prices are a result of President Trump’s administration, which may lead to an increase in crude oil supply and a reduction in price demand.
This means that if the price of crude continues to lower, Dangote Refinery, the Nigerian National Petroleum Company Limited, and marketers may be forced to lower fuel prices to survive the competitive deregulated oil and gas market.
Naijaeyes report
JOIN OUR SOCIAL MEDIA CHANNELS
