Fuel prices will continue to fall, says Rewane.
Bismarck Rewane, Managing Director of Financial Derivatives Company Limited, forecasts that the price of premium motor spirit, also known as petrol, will continue to fall until June 2025.
In recent weeks, both Dangote Refinery and the Nigeria National Petroleum Company Limited (NNPCL) have reduced the cost of the essential commodity, relieving pressure on millions of Nigerians who rely on fuel for their energy needs.
However, Rewane predicts that the recent fall in the product’s pump price will last until mid-year.
“So, between now and June, we will see prices start to fall. But beyond June, depending on what happens in the global oil and currency markets, we might see some stabilisation,” Rewane remarked on Tuesday’s edition of Channels Television’s Business Morning.
A Jigawa filling station with an adjusted price of N620.
According to him, the price war between Dangote Refinery and NNPCL will benefit consumers more.
“Nobody wins in a price war; consumers win in the short run, and the market eventually returns to where it should be. But, at the end of the day, between now and June, pricing leadership will be firmly established,” Rewane stated.
He attributed Dangote Refinery’s lower petrol pump price to production cost efficiency, among other factors.
A fleet of trucks lifts Premium Motor Spirit, also known as fuel, at a refinery in Lagos State’s Ibeju-Lekki district. Credit: @DangoteGroup.
The Dangote Refinery has dropped its gantry pricing from ₦890 to ₦825 per litre. It also pledged to reimburse customers who purchased fuel at higher prices from its key partners.
“For MRS Holdings stations, it will sell for ₦860 per litre in Lagos, ₦870 per litre in the South-West, ₦880 per litre in the North, and ₦890 per litre in the South-South and South-East respectively,” the company’s leadership stated.
“The same product will also be available at the following prices in AP (Ardova Petroleum) and Heyden stations: ₦865 per litre in Lagos, ₦875 per litre in the South-West, ₦885 per litre in the North, and ₦895 per litre in the South-South and South-East.”
The NNPCL reduced pump prices to ₦860 per litre in Lagos state on Monday, but no official statement has been issued yet.