Fuel prices at depots across Nigeria have decreased significantly this week, following a drop in global crude oil prices. This trend has provided much-needed relief to stakeholders in the downstream sector and consumers alike, especially after last week’s price surge.
Price Trends at Key Depots
Lagos
- Premium Motor Spirit (PMS):
- Nipco: Reduced from ₦980 to ₦962 per litre.
- Dangote: Decreased from ₦970 to ₦959 per litre.
- Automotive Gas Oil (AGO):
- Nipco: Lowered from ₦1,200 to ₦1,100 per litre.
- Dangote: Dropped from ₦1,165 to ₦1,084 per litre.
Calabar
- PMS:
- Mainland: Reduced from ₦1,005 to ₦979 per litre.
- Alkanes: Decreased from ₦1,000 to ₦980 per litre.
Port Harcourt
- PMS:
- Bulk Strategic: Lowered from ₦1,004 to ₦981 per litre.
- AGO:
- Zamson: Slight reduction from ₦1,110 to ₦1,100 per litre.
- Stockgap: Dropped from ₦1,150 to ₦1,130 per litre.
The Influence of Crude Oil Prices
Global crude oil prices, a key determinant of local fuel costs, have been volatile recently. In early January 2025, Brent crude prices surged past $81.59 per barrel due to tighter sanctions on Russian and Iranian oil, coupled with a severe cold snap in North America.
However, by January 23, 2025, Brent crude futures had declined to approximately $78.74 per barrel, influenced by uncertainties surrounding U.S. President Donald Trump‘s proposed tariffs and energy policies.
Broader Market Implications
The drop in depot fuel prices is likely to lead to reductions in retail prices, benefiting consumers and businesses already grappling with economic pressures. However, experts warn of potential price fluctuations, depending on future global oil market dynamics and local distribution factors.
This week’s decline in fuel prices reflects a positive response to global crude oil market trends. As depot prices adjust, downstream stakeholders and consumers can expect short-term relief. The industry, however, remains cautious about the long-term stability of these price reductions amidst a volatile global market.