By Udeme Akpan, Energy Editor
Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit, PMS, also known as petrol to N865 per litre from N880 per litre, showing a decrease of 1.7 per cent.
The reduction reflects the drop in the price of crude oil, a major feedstock, to $63 per barrel in April from more than $70 per barrel in March 2025.
Yesterday, checks by Vanguard indicated that oil marketers, including MRS, have started lifting petrol at N865 per litre from the refinery, which has a capacity of 650,000 barrels per day.
According to reports, some operators including MRS and Adorva, which lift petrol from the Dangote Petroleum Refinery, will likely adjust their pump prices to N910 per litre from more than N930 per litre.
In a telephone interview with Vanguard, President of Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Billy Gillis-Harry, expressed optimism for pump price reduction.
He said: “With the reduction in the refinery price, we are optimistic that the pump price would also reduce so that consumers would get petrol at a cheaper price than they are currently buying.”
However, Chief Executive Officer, Centre for CPPE, Dr. Muda Yusuf, the low crude oil price would negatively impact the implementation of Nigeria’s 2025 budget.
He said: “The declining crude oil price is predictably a cause for concern because we are working with a budget that has a benchmark of $75 per barrel. Now, we are talking about $60 per barrel and we are just completing the first quarter of the year.
“We have practically about three quarters to go. If the situation continues, then it will pose a very serious challenge to our economic management team.
First, it poses a risk to our revenue. Currently, about 60-70 per cent of our revenue comes from oil and gas. So, the drop is going to pose a risk to revenue. Second, it will pose a risk to the exchange rate.
“Our economy is dependent on oil for foreign exchange earnings. So, the drop can put a lot of pressure on our exchange rate. It may lead to a further depreciation in the exchange rate. We all know the implication of a weak currency and depreciating exchange rates on the economy.”
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