Petrol Could Drop to N350 per Litre if Crude Oil Dips to $50 per Barrel:
Crude Oil Refinery Owners Association of Nigeria (CORAN) has revealed that petrol price can drop to as low as N350 a litre if crude oil price drops to $50 a barrel.
However, even when crude oil prices have dropped recently, Nigerian petrol price is set to increase even more due to the weakening naira and activities of middlemen.
The price of crude oil has plummeted to $65 per barrel, with Brent crude falling to its lowest since 2021. This is because of the US import tariffs, the OPEC+ surprise supply boost, and China’s retaliatory action. Despite this, the price of petrol in Nigeria has not stopped increasing, with the ex-depot price increasing from N860 to N900 a litre in Lagos.
The CORAN Publicity Secretary, Eche Idoko, acknowledged the importance of the naira-for-crude policy in deepening energy security and naira stabilization.
He pointed out that the policy provides local refineries with access to crude in naira, reducing foreign exchange demand and diminishing the power of middlemen. Idoko lamented that individuals have been opposed to the policy as it disrupts their business in importing inferior petroleum products into the nation.
Idoko attributed the rising petrol prices to the activities of middlemen who are rather more interested in their own agenda than the energy security of the country. Such middlemen, according to him, have no stake in the refining business but would rather connect Nigerian consumers with global traders and earn a profit without taking any risk.
When asked to clarify why there were higher petrol prices despite the fall in crude oil prices, Idoko blamed foreign exchange, logistics, and the middlemen implications as being responsible.
He explained that the logistics cost and the FX implications and middlemen agency charges drive the price of petrol upwards in Nigeria.
The CORAN spokesperson expressed the hope that the government would persist in the policy of naira-for-crude, which until now had succeeded in reducing petrol prices.
He noted that the country’s refiners have been forced to resort to external crude oil supplies, and there was a call for a stable and sustainable energy policy.
The price of petrol in Nigeria is now between N920 and N970 per liter, depending on the location. CORAN has called on the government to re-examine the naira-for-crude policy, which would see petrol prices decrease and achieve energy security for the nation.
