Fuel prices to drop further – Rewane

The Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, has predicted a downward decline in the cost of Premium Motor Spirit (PMS), popularly known as petrol.

Rewane said this after Dangote Refinery and the Nigeria National Petroleum Company Limited (NNPCL) announced a crash in PMS price.

In a statement, Dangote Refinery a reduction of its gantry price from ₦890 to ₦825 per litre, just as it promised a refund to customers who bought at higher prices from its key partners.

“For MRS Holdings stations, it 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 respectively,” the management said of Dangote Refinery said.

“The same product will also be available at the following prices in AP (Ardova Petroleum) and Heyden stations: ₦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.”

Days after Dangote Refinery took the decision, NNPCL also reduced its pump price to ₦860 per litre across its stations in Lagos.

Speaking when he appeared on Tuesday’s edition of Channels Television’s Business Morning, Rewane said the decline in PMS price will continue until the middle of 2025.

“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 stabilisation,” he said.

He said the price war between Dangote Refinery and NNPCL is of benefit to the consumers.

“In a price war, nobody wins, the consumers win in the short run 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,” Rewane said.