National news

Marketers Reveal When Petrol Price Will Crash to N500/Per Litre

Published

2 days ago

Jan 4, 2025.

Femi Fabunmi

PMS Price to Crash Soon – Marketers
Say deliberations ongoing
Reveals all the indices responsible for the crash in price

There are indications that the prices of Premium Motor Spirit (PMS) will drop to N500 soon.

IPMAN Dangote Refinery

The proposed crash in price was revealed to journalists by Marketers on Saturday in Lagos.

According to the Marketers, there are deliberations ongoing hence the proposed drop in price

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PMS currently selling for between N900 and N950 in many fuel stations, would have its price further crashing to as low as N500 a litre in the course of the year.

The oil stakeholders added that the likely drop in prices of petrol in 2025 is premised on a strong downstream sector propelled by the deregulation policy of the federal government.

According to industry players, other reasons for the price drop include stable foreign exchange policy, price competition, Naira-for-crude policy and the coming on stream of the Port Harcourt, Warri, and Dangote refineries.

They also affirmed that for the refineries to sell their products in the domestic market and accept payment in naira will contribute to price fall.

The Federal Executive Council (FEC) had last July approved the sale of crude to local refineries for payment in naira.

They added that the rebound of activities by modular refineries, which are now upbeat about the downstream sector and have concluded plans to add petrol refining to their stable of products in addition to diesel which hitherto was their sole product line.

This comes as Nigeria’s current daily petrol consumption has hit approximately 40 million litres with local production. According to truck out data from the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), Dangote Refinery contributes an average of seven million litres while NNPCL controls 1.2 million litres, bringing the total to 8.2 million litres.

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Modular refineries are out of the picture as they only produce diesel for now. The country currently has about 25 licensed modular refineries but only five are in operation.

This means that only 20.5 per cent of the country’s petrol need is met through local refining, while the remaining 79.5 per cent or 31.8 million litres are imported.

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