Nigerians could soon pay less at the pump as the price of Brent crude oil has dropped to $65 per barrel from its previous price of $69.90. This decrease in global oil prices is expected to lead to a reduction in the cost of Premium Motor Spirit (PMS), commonly known as petrol.
The drop in oil prices follows a combination of factors, including new tariffs announced by U.S. President Donald Trump and a significant production boost by the Organization of Petroleum Exporting Countries (OPEC) and its allies. Starting May 2025, OPEC+ countries will increase oil output by 410,000 barrels per day, well above the original plan of 135,000 barrels.
As a result, depot prices for major suppliers like Mainland, A.Y.M, Ever, Prudent, Eterna, and Soroman have already decreased. For instance, Mainland’s price dropped from N920 to N918 per litre, while Prudent’s price went down to N912 from N913 per litre.
According to petroleumprice.ng, oil marketers are expected to adjust pump prices downward as new supplies arrive, provided the current market trend holds.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), expressed optimism, suggesting that lower petrol prices could lead to reductions in fares, goods, and services if market conditions remain favorable.
Meanwhile, OPEC’s recent report highlights the gradual return of production adjustments among eight key oil-producing countries, including Saudi Arabia and Russia. These adjustments, expected to start in May 2025, aim to stabilize the market and maintain a positive outlook on global oil supply.
