Business
Fuel Prices Set for Further Decline – Rewane Predicts
Economic analyst Bismarck Rewane forecasts a continued drop in fuel prices amid market adjustments and competition. What’s driving the trend?
Bismarck Rewane, the Managing Director of Financial Derivatives Company Limited, has forecasted that the price of premium motor spirit (commonly referred to as petrol) will keep decreasing until June 2025.
Recently, both Dangote Refinery and the Nigeria National Petroleum Company Limited (NNPCL) have significantly reduced fuel prices. This reduction has alleviated financial pressure for millions of Nigerians who rely on this essential commodity to meet their energy requirements.
However, Rewane believes that the recent decrease in the product’s pump price is anticipated to persist until mid-year.
Rewane stated on Tuesday’s edition of Channels Television’s Business Morning, “Typically, prices will start to decrease from now until June. However, after June, as conditions stabilize and depending on developments in the global oil and currency markets, we might witness some stabilization.”
He believes that the ongoing price war between Dangote Refinery and NNPCL will be more advantageous for consumers.
“In a price war, there are no real winners. Consumers may benefit in the short term, but eventually, prices tend to stabilize at their original levels. However, by the time June arrives, we can expect clear establishment of price leadership,” Rewane stated.
He credited the reduction in petrol pump prices at Dangote Refinery to production cost efficiency, among other factors.
The Dangote Refinery has recently lowered its gantry price from ₦890 to ₦825 per litre. Additionally, it pledged to reimburse customers who purchased fuel at higher prices through its major partners.
The management of Dangote Refinery stated that at MRS Holdings stations, the price per litre will be ₦860 in Lagos, ₦870 in the South-West, ₦880 in the North, and ₦890 in both the South-South and South-East.
The product will be offered at the following prices in AP (Ardova Petroleum) and Heyden stations: ₦865 per litre in Lagos, ₦875 per litre in the South-West, ₦885 per litre in the North, and ₦895 per litre in both the South-South and South-East regions.
On Monday, NNPCL lowered its pump price to ₦860 per litre at its stations in Lagos state, although they have not yet released an official statement confirming this change.
