Bismarck Rewane, Managing Director of Financial Derivatives Company Limited, says Premium Motor Spirit will continue to decline until June 2025.
He made this prediction on Channels Television’s Business Morning on Tuesday.
He said the price will drop until mid year and then stabilise depending on the global oil and currency markets.
He noted that while a price war might give consumers an advantage initially, the market will go back to normal. He assured that until June, a clear price leadership will be across the board.
He attributed the recent reduction in pump price at Dangote Refinery to improved production cost efficiency, among others.
In his words, So, 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 stabilization.
“In a price war, nobody wins; the consumers win in the short run, and 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.”
When Dangote Refinery announced the new price, it said for MRS Holdings stations, petrol 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.
For AP (Ardova Petroleum) and Heyden stations, the same product will sell for ₦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.
After Dangote Refinery’s announcement, the Nigeria National Petroleum Company (NNPC) Limited also reduced its pump price to ₦860 per litre across its stations in Lagos State.
This is a big trend in the market, as recent statistics show that competitive pricing can give consumers up to 5-10% savings in some areas, according to industry reports.
This has been reported by credible financial news and supported by experts in the oil and gas sector.