Fuel prices may be about to drop… Here’s what’s driving it

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Local prices of petrol and diesel are projected to decrease following a significant decline in global crude oil prices linked to the reopening of the Strait of Hormuz.

As of Saturday morning, West Texas Intermediate (WTI) and Brent crude dropped by 11 percent and 9 percent to $83.85 and $90.38 per barrel, respectively, compared to previous levels of around $100 per barrel.

The drop follows Iran’s announcement that the Strait of Hormuz has been fully reopened for maritime traffic.

This development is already beginning to influence Nigeria’s downstream petroleum sector, where depot marketers have started adjusting fuel prices slightly downward.

Petrol prices at depots are currently between N1,205 and N1,206 per litre—approximately N5 to N6 above the Dangote Refinery price of N1,200 per litre.

This pricing pattern has been observed among marketers such as Aiteo, Bono, and NIPCO.

Meanwhile, diesel prices at depots in Lagos, including Menj and Duport, were recorded at N1,775 per litre.

Market analysts indicate that the drop in crude oil prices has led to panic selling among depot marketers.

Despite this trend, retail pump prices have remained unchanged at the time of reporting, with petrol selling between N1,290 and N1,333 per litre, while diesel is priced between N1,850 and N1,900 per litre.

The President of the Independent Petroleum Marketers Association, Abubakar Maigandi, confirmed the situation, noting that further price reductions are expected if the decline in crude oil prices continues.

“We expect fuel prices to drop in the coming days if crude oil prices continue to decline,” he said.

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