Price Of Petrol To Reduce As Global Oil Prices Drop

There are growing indications that Nigerians may soon pay less for Premium Motor Spirit (PMS), commonly known as petrol, following a significant drop in the global price of Brent crude oil.

Naijaonpoint understands that the price of Brent, which is used globally to benchmark crude prices, has fallen to $65 per barrel from $69.90 per barrel in recent days.

This price reduction is partly driven by the announcement from U.S. President Donald Trump of sweeping new tariffs, which have influenced market trends.

Additionally, the Organisation of Petroleum Exporting Countries (OPEC) and its allies have decided to increase oil output by 410,000 barrels per day starting in May 2025, which is substantially higher than the previously planned increase of 135,000 barrels per day.

These decisions are contributing to a significant shift in the global oil market, ultimately affecting petroleum product prices.

Depot Prices on the Decline

As a result of the drop in crude oil prices, the depot prices for major suppliers have also seen a decrease. Depot prices for Mainland, A.Y.M, and Ever have dropped to ₦918 per litre, down from N920 per litre. Similarly, Prudent, Eterna, and Soroman have lowered their prices to ₦912, ₦897, and ₦915 per litre, respectively, from previous prices of ₦913, ₦900, and ₦916 per litre.

According to petroleumprice.ng, oil marketers are expected to adjust their pump prices downwards as they receive new supplies this week, assuming the current market conditions persist.

This could lead to a reduction in the retail price of petrol, benefiting consumers across the country.

In an interview with Sunday Vanguard, Billy Gillis-Harry, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), expressed optimism about the potential benefits of the price reduction.

He stated that if the favorable market conditions continue, the decrease in fuel prices could lead to lower costs for fares, goods, and services, benefiting the Nigerian economy as a whole.

Meanwhile, in a report, OPEC stated, “The eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually on 3 April 2025, to review global market conditions and outlook.

“In view of the continuing healthy market fundamentals and the positive market outlook, and in accordance with the decision agreed upon on 5 December 2024, subsequently reaffirmed on 3 March 2025, to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from 1 April 2025, the eight participating countries will implement a production adjustment of 411 thousand barrels per day, equivalent to three monthly increments, in May 2025.

“This comprises the increment originally planned for May in addition to two monthly increments. The gradual increases may be paused or reversed subject to evolving market conditions. This flexibility will allow the group to continue to support oil market stability. The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation.

“The eight countries reaffirmed their commitment to the voluntary production adjustments agreed at the 53rd Joint Ministerial Monitoring Committee, JMMC meeting on 3 April 2024. They also confirmed their intention to fully compensate any overproduced volume since January 2024 and to submit updated front-loaded compensation plans to the OPEC Secretariat by 15 April 2025.”