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HomeNIGERIAPetrol price may crash in October as crude oil demand dips

Petrol price may crash in October as crude oil demand dips

Following the slight slump in the price of crude oil in the international market, there are strong indications that the pump price of petrol is likely to dip in October.

Anxious Nigerians are waiting for the price band of petrol for October, even though the federal government says it no longer fixes prices of petroleum products but will monitor the oil marketers to ensure they do not prey on hapless consumers in a deregulated environment.

Sources at the Independent Petroleum Marketers Association of Nigeria (IPMAN) said that they anticipate a reduction in the ex-depot price of petroleum for this month as the brent crude dropped from $40 per barrel to $39. 38 on Friday.

They added that the PPMC was expected to make some pronouncement on the matter to guide the marketers.

Last month, the Executive Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA) Abdulkadir Saidu maintained that while crude oil price was a major determinant of petrol pump price, it was not the sole factor as other issues like source of product come into play.

In all, he stated that the Nigerian government would no longer fix prices but allow market forces determine same.

Early September, the PPMC quietly pegged the ex-depot price of petrol at N151. 56 per litre and by the time consumers realized it, petrol climbed to between N158-N162/litre. At that time, brent crude had appreciated to $46 per barrel.

The PPMC, in a memo dated September 2, with ref: “PPMC /IB/LS/020, dated September 2, 2020, the company said “a new product price adjustment has been effected on our payment platform.

“To this end the price of Premium Motor Spirit (PMS) is now one hundred and fifty one naira, fifty six kobo (N151.61) per litre.”

The Head Depot Manager, D.O. Agbalaya, who signed the memo said: “This is effective from 2nd September, 2020

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