Petrol price may drop to N900 per litre as crude oil falls below $90
By Aboki Forex —
Global crude oil prices have fallen sharply from over $120 to about $87 per barrel. The drop is driven by hopes of a US Iran peace deal and improved stability in the Middle East.
Industry analysts say the decline could push petrol prices in Nigeria down significantly. Some marketers predict the pump price may drop to around N900 per litre in the coming weeks.
Benchmark crude surged above $120 in April after tensions began in late February. Prices had climbed from below $70 to over $100 before peaking above $120. Now the trend has reversed.
Talks around reopening key shipping routes like the Strait of Hormuz have also helped ease supply fears. This has raised expectations of smoother global oil flows.
Refinery operators and marketers say further price cuts are possible. But they warn that existing higher cost crude stocks could delay immediate reductions at the pump.
The easing global oil market is reviving expectations that Nigerian petrol prices will finally come down after months of high costs.