Petrol price may drop to N900 per litre as crude oil falls, US-Iran peace looms
By Aboki Forex —
Industry operators say the price of Premium Motor Spirit, or petrol, could fall to as low as N900 per litre in the coming days. This depends on a proposed peace deal between the United States and Iran and the continued drop in crude oil prices.
Recent developments in the Middle East have pushed global oil prices down steadily. This has raised hopes that fuel prices will also drop at the pumps.
Crude oil prices fell from over $120 per barrel in April to about $87 per barrel as of Sunday. The sustained decline, together with plans to reopen the Strait of Hormuz, has given fuel marketers cautious optimism. They expect prices of petrol, diesel and aviation fuel to ease soon.
Crude oil, the main raw material for fuel production, rose from below $70 per barrel after the US-Iran conflict began on February 28. During more than three months of hostilities, crude traded above $100 and at some points exceeded $120 per barrel. This led to a sharp rise in fuel prices across the world.