₦750/Litre? GOOD- NEWS Looms As Dangote, NNPC May Crash Price Of Petrol Again; SEE Reason
Petrol prices in Nigeria may soon decrease further from the current ₦860 per litre, with expectations of a reduction to about ₦750 per litre. This comes amid the continued appreciation of the Nigerian naira in the foreign exchange market and a significant drop in global crude oil prices.
The decline in oil prices follows reports that the Organisation of Petroleum Exporting Countries and its allies (OPEC+) will proceed with an increase in oil output from April 2025. As a result, Brent crude fell by $1. 19 per barrel, or 1. 6%, to settle at $71. 62 per barrel, while West Texas Intermediate (WTI) crude declined by $1. 39, or 2%, to sell at $68. 37 per barrel. These are the lowest price levels for Brent since 6 December 2024, and for WTI since 9 December 2024.
As crude oil prices drop, Nigeria’ s major fuel suppliers have responded by adjusting their prices. Recently, Dangote Refinery reduced its ex- depot petrol price from ₦890 per litre to ₦825 per litre. The Nigerian National Petroleum Company Limited (NNPC) followed suit with a similar price adjustment, leading to increased competition between the two largest players in Nigeria’ s downstream petroleum sector.
Analysts predict that as crude oil prices continue to fall, petrol prices in Nigeria could decline further, offering relief to consumers who have struggled with the high cost of fuel in recent months.
Bonny Light, Nigeria’ s benchmark crude, sold at approximately $73. 53 per barrel on Tuesday, 4 March 2025, according to reports from Legit. ng. This decline raises fears of a budget deficit, as oil remains a key source of foreign exchange and government revenue.
Energy policy analyst Adeola Yusuf described the fall in oil prices as a ” double- edged sword. ” According to him, while Nigerians may benefit from lower fuel prices, the government could face significant fiscal challenges.
” It is both a blessing and a curse. A blessing because Nigerians will now buy fuel at affordable prices as dealers and refiners adjust their prices in line with international oil rates. A curse because it may result in a massive budget deficit for the Nigerian government, which pegged oil prices at $75 per barrel, ” he said.
As oil prices fluctuate, Nigerians remain hopeful that lower fuel prices will ease the cost of living. However, economic analysts warn that if crude oil prices continue to drop, the government may struggle to meet its revenue targets, potentially affecting national development projects and public sector spending.
