Victor Ezeja
Economist and Chief Executive Officer of Financial Derivatives Company (FDC), Mr Bismarck Rewane, has predicted that the price of Premium Motor Spirit (PMS), also known as petrol and diesel, may drop in June and July.
Mr Rewane made the projection in its economic outlook for June and July. According to the renowned economist, petrol may drop to N845 per litre, while diesel might sell at around N950 per litre.
Join our WhatsApp ChannelHe attributed this to the recent appreciation of the naira and relative stability of the currency in the foreign exchange market, coupled with the growing competition in the downstream petroleum sector.
In the ensuing competition in the downstream petroleum sector posed by the activities of the Dangote refinery and its distribution partners, marketers in Lagos and Abuja have reduced the pump price of petrol.
Major marketers such as Ranoil, Shafa, and AA Rano are now selling petrol at N900 per litre, down from N910.
This is as retail outlets owned by the Nigeria National Petroleum Company Limited (NNPCL) and Dangote Refinery partners, such as MRS, AP Ardova, Optima, and Bovas, are currently selling petrol at N875 in Lagos and N895 per litre in Abuja.
Analysts have predicted that, in line with the ongoing competition, NNPCL and Dangote Petroleum Refinery may announce additional price cuts after the Eid al-Adha celebration.
Billy Gillis-Harry, the National President of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), while recognising the dynamics at play, noted that these reductions are essential for remaining competitive in the domestic market.
“Importing petrol at competitive global rates necessitates these price adjustments. Healthy competition benefits consumers and drives sectoral efficiency,” Gillis-Harry stated.
The 650,000 barrels per day Dangote Petroleum Refinery has serially complained about difficulty in getting the supply of crude oil locally, pushing the company to resort to importation.
The refinery has imported more US crude in order to close the gap and meet its production requirements.
According to a Bloomberg report, about one-third of the crude used by the Dangote refinery in 2025 came from the United States.
President of Dangote Group, Alhaji Aliko Dangote, compared fuel prices across West Africa and stated that it is cheaper in Nigeria.
He attributed it to the Naira-for-crude policy being implemented by the Federal Government, which allows sales of crude oil and refined petroleum products in naira.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
