Brent crude slumps to $63 per barrel, down 1.17%, driven by oversupply, slowing global demand, and a stronger US dollar. The drop from over $67 last week has already triggered lower diesel and petrol prices in Nigeria.
Between 25 and 29 April 2025, AGO prices at Dangote, Chipet, and Ibeto fell by ₦10–₦12 per litre. PMS prices at major depots like Nipco and Dangote also dipped slightly.
This article explains how the Brent slump is filtering into the Nigerian downstream market, with importers adjusting to reduced landing costs.
As Brent crude slumps to $63, more pump price cuts may follow—if forex access and logistics bottlenecks don’t get in the way.
Brent Crude Drops Below $65, Fuel Prices Follow
Brent crude slumps to $63 per barrel, falling by 1.17% from earlier levels near $67 last week. This marks a steep correction amid growing supply, weaker global demand, and a stronger US dollar.
Other key benchmarks also declined:
- WTI: $59.64 (-1.29%)
- Murban: $64.51 (-2.43%)
- Natural Gas: $3.385 (-0.03%)
The impact of the drop is already showing across Nigeria’s downstream market, with fuel depot prices softening in Lagos between 25 and 29 April.
Depot Price Update: PMS and AGO Begin to Slide
Price movements at major Lagos depots confirm the early effects of the Brent price drop. Between 25 and 29 April:
Premium Motor Spirit (PMS)
- Nipco: ₦845 → ₦842
- Dangote: ₦839 → ₦838
- MRS Tincan: stable at ₦839
Automotive Gas Oil (AGO)
- Dangote: ₦972 → ₦962
- Chipet: ₦960 → ₦950
- Ibeto: ₦957 → ₦953
While PMS prices dropped by only ₦1–₦3, AGO (diesel) prices fell by as much as ₦12 per litre at some depots, reflecting the higher sensitivity of diesel margins to crude price fluctuations.
Why Brent Crude Slumps to $63: Market Drivers
Several converging factors explain why Brent crude slumps to $63:
- OPEC+ Supply Surge: Oil production is up by over 1.2 million bpd globally, with the US shale sector pumping at record levels.
- Weaker Demand: China and Europe continue to underperform in industrial and transport fuel usage.
- Stronger Dollar: The rising US dollar makes crude more expensive in local currencies, limiting global demand.
- Geopolitical Stability: Easing tensions in the Middle East have removed the risk premium from crude pricing.
- Refinery Maintenance: Seasonal shutdowns reduce crude demand from refiners worldwide.
These shifts, combined with technical selloffs in futures markets, have pushed Brent to its lowest level in weeks.
Nigeria’s Fuel Market: Cautious Optimism Emerges
As Brent crude slumps to $63, marketers and importers in Nigeria are reassessing pricing strategies. Lower landing costs could improve profit margins and lead to broader pump price cuts—provided logistics and forex constraints are managed effectively.
Current depot trends suggest:
- Further AGO reductions are possible if Brent stays under $65
- PMS pricing may follow with a delay, given tighter forex access and NNPC pricing controls
- Independent marketers could regain ground against state-aligned distributors
However, challenges remain. The naira’s depreciation against the dollar and port congestion could blunt the relief expected at the retail level.
What to Expect in the Days Ahead
The full benefit of lower global crude prices may take 1–2 weeks to reflect in pump prices, especially for PMS. Nonetheless, the trend is clear: Brent crude slumps to $63, and fuel prices in Nigeria are responding.
Keep watching depot updates, tanker arrivals, and CBN forex allocations. If Brent continues to fall or stabilises at current levels, Nigerian motorists and diesel users could see further relief by mid-May.