Stakeholders in Nigeria’s petroleum sector have stated that the price of petrol could drop to about N900 per litre if the proposed peace agreement between the United States and Iran is successfully concluded and the decline in global crude oil prices continues.
Reports indicate that the price of crude oil has fallen from over $120 per barrel in April to about $87 per barrel, raising hopes that the prices of petrol, diesel, and aviation fuel will also decline.
During the period of tension between the United States and Iran, petrol prices in Nigeria reportedly rose from about N830 to N1,300 per litre due to the surge in crude oil prices. However, with expectations that the Strait of Hormuz may be reopened and peace restored, petroleum marketers believe fuel prices could return to lower levels.
According to a report by The Punch, a source at Dangote Refinery disclosed that although the refinery is still processing crude oil purchased at higher prices, there is a possibility that petrol prices could fall to N900 per litre if the downward trend in crude oil prices is sustained.
Similarly, the National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Joseph Obele, said that if the Strait of Hormuz is reopened, petrol prices could fall below N1,000 per litre. He noted that before the Middle East crisis, petrol was selling for around N800 per litre.
Meanwhile, U.S. President Donald Trump announced that a peace agreement with Iran is expected to be signed, which would allow the Strait of Hormuz to be reopened to all maritime traffic.
Energy sector stakeholders have projected that if the agreement succeeds and crude oil prices continue to decline, Nigerians could witness another round of fuel price reductions in the coming days.
