Nigerian motorists may have a reason to watch petrol pump prices closely as global crude oil prices slipped further on Monday, with Brent falling to $101.50 per barrel and West Texas Intermediate dropping to about $98.
Brent crude dropped to $101.50 per barrel, while West Texas Intermediate, WTI, fell to about $98 per barrel, according to market data monitored on Monday.
The declines represented 2.29 per cent and 2.37 per cent, respectively, from the prices recorded at the weekend.
The latest fall came despite escalating tensions in the Middle East, which have disrupted shipping through the strategic Strait of Hormuz, a key route for global oil supplies.
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Data showed that the number of commodity vessels passing through the strait had fallen to about 12, from around 35 previously, although tanker traffic around Saudi Arabia has improved.
Despite the decline in international crude prices, petrol pump prices in Nigeria have remained elevated.
In Abuja, motorists are currently buying petrol for between N1,395 and N1,450 per litre, although some filling stations cut their prices over the weekend.
The reductions are coming amid growing competition in Nigeria’s downstream petroleum sector, with retailers adjusting their pump prices to attract customers.
The latest movement in crude prices could put further pressure on domestic petrol prices, but the impact on pump prices will depend on other factors affecting the cost of supplying petrol to the Nigerian market.
