Local prices of petrol and diesel are anticipated to drop following a decline in global oil prices due to the reopening of Hormuz.
By Saturday morning, West Texas Intermediate (WTI) and Brent crude dropped 11% and 9% to $83.85 and $90.38 per barrel, respectively, after starting near $100.
The decline follows Iran’s announcement that the Strait of Hormuz is now completely open to ship traffic.
The development has significantly begun to reflect in Nigeria’s downstream petroleum market, where depot marketers have slightly reduced fuel prices.
The current price range for petrol at depots is N1,205 to N1,206 per litre, which is roughly N5 to N6 more than the N1,200 per litre pricing at the Dangote Refinery.
This pricing trend was noticed among marketers such as Aiteo, Bono, and NIPCO.
Meanwhile, diesel prices at Lagos depots, including Menj and Duport, stood at N1,775 per liter.
Market observers and analysts claim that depot marketers are engaging in panic selling because to the decline in crude oil prices.
As of the time of report, retail pump prices had not altered, with petrol selling between N1,290 and N1,333 per litre and diesel between N1,850 and N1,900 per litre.
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Meanwhile, Abubakar Maigandi, president of the Independent Petroleum Marketers Association(IPMAN), verified the development.
He also stated that if the decline in crude prices continues, more cuts are probably in store.
He said “We expect fuel prices to drop in the coming days if crude oil prices continue to decline.”
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