US-Iran truce could slash petrol price to N900 – Operators

Nigeria's fuel prices might soon drop to N900 per liter, according to industry operators. This potential decrease hinges on a proposed peace deal between the United States and Iran, which could stabilize global oil prices. Crude oil prices have already seen a significant decline, falling from over $120 per barrel in April to around $87 by Sunday.

This downward trend in oil prices, coupled with plans to reopen the vital Strait of Hormuz, has sparked cautious optimism among fuel marketers. They anticipate that prices for petrol, diesel, and aviation fuel could ease in the coming days. The conflict between the US and Iran, which began on February 28, had previously driven crude oil prices above $100 per barrel, sometimes exceeding $120, leading to a sharp global increase in fuel costs.

“

Yes, N900/litre petrol is possible if oil prices settle down, but we still have the expensive crude stock in our tanks.

In Nigeria, petrol prices had surged from approximately N830 to N1,300 per liter. Diesel and aviation fuel costs also rose substantially, prompting warnings from airline operators about potential impacts on their operations. The Dangote Petroleum Refinery, which recently reduced its gantry price for petrol to N1,250 per liter and diesel to N1,700 per liter in response to crude prices falling below $100 per barrel, might consider further reductions. However, a source within the refinery noted that they still hold significant stock of crude purchased at higher prices, suggesting that N900 per liter petrol is achievable only if oil prices continue to decline and this expensive stock is depleted.

“

fuel prices would decline further as crude oil prices ease.