Expect Decrease In Fares, Goods, Services, Marketers Tell Nigerians

According to reports from Vanguard on Saturday, April 5, Nigerians may soon experience a reduction in the cost of petrol, as international crude oil prices witness a notable decline and oil producers prepare to ramp up supply.

The benchmark price of Brent crude oil, which influences the global pricing of petroleum products, has dropped to $65 per barrel, down from its previous value of $69.90. This downward shift is expected to reflect on the domestic market, potentially reducing the cost of Premium Motor Spirit (PMS), commonly known as petrol, for consumers across Nigeria.

Industry analysts link the fall in crude prices to several factors, including global economic tensions and recent geopolitical developments. Notably, increased pressure from U.S. policy changes, including new tariffs announced by President Donald Trump, have shaken investor confidence and contributed to a decline in oil prices.

Additionally, the Organisation of Petroleum Exporting Countries and its allies (OPEC+), in a recent decision, agreed to expand oil production by 410,000 barrels per day beginning in May 2025. This adjustment significantly exceeds the 135,000 barrels per day increase initially projected, further impacting global oil supply and prices.

In the domestic market, the ripple effect is already being felt. Data from independent market sources show that several depot operators have reduced their petrol prices. For example, Mainland, A.Y.M, and Ever depots now sell at N918 and N919 per litre, down from N920. Similarly, Prudent has lowered its price to N912 from N913, Eterna to N897 from N900, and Soroman to N915 from N916 per litre.

According to petroleumprice.ng, a platform that tracks fuel prices in Nigeria, there is a high possibility that pump prices at filling stations will also be adjusted downward as new consignments arrive, provided current market conditions remain stable.

Speaking to Financial Vanguard over the weekend, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, expressed optimism about the implications of these market shifts. He suggested that lower petrol prices could lead to reduced transportation costs, and in turn, lower prices for goods and services nationwide.

Meanwhile, OPEC+ reaffirmed its commitment to stabilizing the oil market. The coalition stated that the eight participating countries — including Saudi Arabia, Russia, and the UAE — will implement the increased output as part of a phased adjustment plan. They also emphasized flexibility, noting that the production rise could be halted or reversed depending on future market trends.

The group further confirmed plans to balance any excess production since January 2024 and has tasked member states with submitting revised compensation strategies to the OPEC Secretariat by mid-April 2025.