FUEL PRICE CRASH: No More N930 Per Litre As Fresh Petrol Prices Expected
Oil marketers have announced that petrol prices at filling stations across Nigeria are set to decline, offering much-needed relief to beleaguered motorists who have been grappling with costs soaring beyond N930 per litre.
This price adjustment comes as a beacon of hope, easing the financial strain on drivers who rely on fuel to navigate their daily journeys.
This latest developments followed global crude prices plummeting to $63 per barrel on Tuesday, April 8. …CONTINUE READING
The Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), Clement Isong, expressed grave concerns about the economic implications of this downturn.
Isong said: “The extremely low price of crude oil at $65 per barrel is really bad based on the budget benchmark for this year.”
Isong, however, noted that the benefits of low crude oil prices in reduced fuel costs for consumers. He added: “Sustained low crude prices could lead to a gradual reduction in fuel prices at the pump, offering some relief to commuters and transporters.”
However, he cautioned that this would depend on the duration of the price downturn and its impact on global markets.
Refiners share challenges to achieve lower fuel prices Similarly, the Crude Oil Refinery Owners Association of Nigeria (CORAN) has said that petrol could fall to as low as N350 per litre at filling stations.
According to CORAN, with crude prices declining sharply, there is no reason Nigerians should continue to pay as high as N900 per litre for petrol.
Eche Idoko, Publicity Secretary of CORAN, explained that the key to achieving a lower petrol price in Nigeria depends heavily on the naira-for-crude initiative.
He stressed that petrol prices will continue to rise despite the crash in crude prices and the reduction in its landing cost.
Idoko noted that some middlemen do not want local refining to succeed, and they have since resorted to kicking against the naira-for-crude deal, Punch reports.
According to him, the price of petrol was heading to N700 per litre before the naira-for-crude deal was discontinued.
He added: “The price will keep rising due to high FX and logistics costs. Importing refined products adds shipping expenses, and middlemen also take a cut. It is like paying agency fees when renting a house. All these factors push the price up.”
