Petrol set to hit N800/litre as oil prices tumble

The drop in crude oil prices and the resumption of the naira-for-crude arrangement for local refiners may push the pump price of Premium Motor Spirit (petrol) further down to about N800 per litre in the coming weeks or months, oil marketers and industry analysts said on Wednesday

This comes as the Dangote Petroleum Refinery reduced its ex-depot price for PMS to N835 per litre, its second downward adjustment in less than seven days.

The industry players, however, pointed out that the N800 per litre price could be achieved if crude drops further to $50 per barrel and marketers depend less on foreign exchange to buy products. Brent, the global benchmark for crude, was about $65 per barrel on Wednesday.

Also on Wednesday, the Dangote refinery again slashed its refined product prices to make them cheaper, cutting its ex-depot rate for petrol to N835 per litre.

The new price represents a N30 reduction from N865 per litre implemented six days ago, marking a 3.5 per cent decrease, and a N45 reduction from the N880 per litre sold by the facility last Wednesday.

This price cut marks Dangote’s third downward price adjustment in six weeks. A pro forma invoice sighted by our correspondent, and checks on petroleumprice.ng confirmed the development.

Confirming this, a statement signed by the Group’s Chief Branding and Communications Officer, Anthony Chiejina, said the refinery reduced its gantry price to reaffirm its commitment to providing high-quality petrol at affordable rates, benefiting consumers across the nation.

It stated that the new price is inclusive of charges by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The document detailing the revised price structure shows that PMS at the gantry will now sell for N835 per litre, inclusive of NMDPRA statutory levies, while coastal sales remain on hold. The diesel gantry price is set at $608 plus a $70 surcharge, payable either in naira at N1,650/$ or in USD.

Coastal sales are also on hold. Jet fuel will be sold at $664.75 with a $42 gantry surcharge and a $22 coastal surcharge. Prices for cooking gas at both gantry and coastal points are currently on hold.

The statement added that its partners will sell the products between N890 and N920. These partners include MRS, AP (Ardova), Heyden, Optima Energy, Hyde and Tecno Oil.

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