By Udeme Akpan, Energy Editor
THERE are indications that Nigerians would pay less for the Premium Motor Spirit, PMS, also known as petrol as the price of Brent dropped to $65 per barrel from $69.90 per barrel in the global market.
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The price of Brent is used globally to benchmark the prices of other crudes – major feedstocks – and by extension petroleum products prices.
Checks by Vanguard indicated that the development was partly fueled by the already heavy losses following U.S. President Donald Trump’s announcement of sweeping new tariffs.
The checks further showed that it was also fueled by the decision of the Organisation of Oil Producing Countries and its allies, also known as OPEC+ to increase oil output by 410,000 barrels per day starting in May 2025 far above the 135,000 barrels originally planned.
Depot owners slash petrol prices
Already, the depot prices of Mainland, A.Y.M and Ever have dropped to N918 per litre from N920 and N919 from N920 per litre, respectively.
Also, the depot prices of Prudent, Eterna and Soroman have dropped to N912 from N913 per litre, N897 from N900 per litre and N915 from N916 per litre, respectively.
According to petroleumprice.ng, oil marketers would likely adjust their pump prices downwards as they get new supplies next week, if the current market condition persists.
Expect decrease in fares, goods, services — marketers
In a telephone interview with Financial Vanguard, weekend, the President of Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Billy Gillis-Harry, expressed optimism that the development would culminate in low costs of fares, goods and services if the fundamentals persist in the market.
OPEC raises output
However, in a report, OPEC, stated: “The eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually on 3 April 2025, to review global market conditions and outlook.
“In view of the continuing healthy market fundamentals and the positive market outlook, and in accordance with the decision agreed upon on 5 December 2024, subsequently reaffirmed on 3 March 2025, to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from 1 April 2025, the eight participating countries will implement a production adjustment of 411 thousand barrels per day, equivalent to three monthly increments, in May 2025.
“This comprises the increment originally planned for May in addition to two monthly increments. The gradual increases may be paused or reversed subject to evolving market conditions. This flexibility will allow the group to continue to support oil market stability. The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation.
“The eight countries reaffirmed their commitment to the voluntary production adjustments agreed at the 53rd Joint Ministerial Monitoring Committee, JMMC meeting on 3 April 2024. They also confirmed their intention to fully compensate any overproduced volume since January 2024 and to submit updated front-loaded compensation plans to the OPEC Secretariat by 15 April 2025.”
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