Decline in fuel prices will continue till June, says Rewane
The Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, has predicted that the pump price of petrol will continue to decline until June 2025.
Both Dangote Refinery and the Nigeria National Petroluem Company Limited (NNPCL) have crashed the price of the essential commodity in recent weeks, easing the pressure on millions of Nigerians who depend on fuel for their energy needs.
But Rewane said the recent reduction in the pump price of the product is expected to continue until mid-year.
He said, “Generally between now and June, we will see prices begin to decline. But after June as things stabilize, depending on what happens in the global oil and currency market, we might begin to see some stabilisation,” Rewane said on Tuesday’s edition of Channels Television’s Business Morning show.
Both the NNPCL and Dangote Refinery have reduced the cost of the essential commodity.
According to him, the price war between Dangote Refinery and NNPCL will benefit the consumer more.
“In a price war, nobody wins, the consumers win in the short run then eventually the market goes back to where it should be. But, at the end of the day, between now and June, the price leadership will be firmly established,” Rewane said.
He attributed Dangote Refinery’s reduction in the pump price of petrol to production cost efficiency among other factors.
“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 management of Dangote Refinery said.
“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 also reduced its pump price to N860 per litre across its stations in Lagos state on Monday but it is yet to officially issue a statement to that effect.
President Bola Tinubu announced the removal of fuel subsidy during his inauguration in May 2023, prompting a spike in the cost of the item.
The commodity was sold for less than ₦200 per litre before Tinubu’s pronouncement.
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