Fuel Prices May Drop as Crude Oil Dips Below $60, Say Marketers
Written by Agboola Oluwafemi on May 6, 2025
Nigerians may soon see a reduction in petrol and diesel prices as global crude oil prices continue to decline. Although the adjustment may not be immediate, oil marketers suggest that sustained low prices could lead to significant cuts at the pumps.
Crude prices dropped below $60 per barrel on Monday, with Brent crude trading at $59.80 and West Texas Intermediate at $56.71. Nigeria’s own crude blends, Brass River and Qua Iboe, hovered around $64.60—well below the $75 benchmark in the 2025 national budget, sparking concerns over revenue shortfalls.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, noted that while a reduction in product prices is likely, it will depend on how stable the crude price slump proves to be. “If the price drop is driven by lasting market forces, we might see adjustments in a few weeks,” he said.
Billy Gillis-Harry, president of the Petroleum Products Retail Outlet Owners Association, added that immediate reductions are unlikely, as many refineries are still working with crude acquired before the price drop. He explained that changes in pump prices typically lag due to supply chain processes and existing inventories.
The fall in prices follows OPEC+’s decision to ramp up output by 411,000 barrels per day in June, raising concerns about oversupply amid an uncertain demand outlook. The increase is part of a broader move to unwind production cuts initially implemented in 2022.
Despite the potential for lower prices, experts caution that adjustments at the retail level will not occur instantly due to the complexities of pricing structures and ongoing market volatility.
FOLLOW OUR SOCIAL MEDIA CHANNELS:
- WhatsApp channel: Shiloh Media Advertising
- Facebook: Shiloh Media
- Twitter: Shiloh Media
- Instagram: Shiloh Media
- YouTube: Shiloh Media
- Tiktok: Shiloh Media
Author: Agboola Oluwafemi
Marketing Expert
