Petrol Price Could Drop to N1,000 as Dangote Cuts Cost, Experts Say
By Aboki Forex —
Energy experts predict petrol prices may fall to around N1,000 per litre in the coming weeks. This follows a sharp drop in global crude oil prices and a N75 price cut by Dangote Petroleum Refinery.
The refinery reduced its ex-depot price for Premium Motor Spirit (PMS). This has raised hopes that marketers will soon lower prices across the country.
A BusinessDay report says the price cut has intensified competition in Nigeria's downstream oil sector. It has also strengthened projections that petrol selling above N1,200 per litre may soon end if current market conditions hold.
Industry observers say the reduction reflects improving fundamentals in the international oil market. They point to easing tensions in the Middle East and renewed hopes of a peace deal between the United States and Iran.
Many marketers are now adopting a wait-and-see strategy. They expect further price drops before making new bulk purchases.