According to reports, the price of Premium Motor Spirit (petrol) may be on a downward slope if the crude oil prices continue to go down.
This may also be strengthened as the naira maintains its stability against the dollar in the foreign exchange market.
Oil prices fell about two per cent to a 12-week low this week amid reports that OPEC+ will proceed with a planned oil output increase in April.
Brent futures fell $1.19, or 1.6 per cent, to settle at $71.62 a barrel, while the United States West Texas Intermediate crude fell $1.39, or two per cent, to settle at $68.37.
According to a report by Reuters, those were the lowest closes for Brent since December 6 and WTI since December 9.
It was gathered that the Organisation of the Petroleum Exporting Countries and allies like Russia, known as OPEC+, decided to proceed with a planned April oil output rise.
Players in the Nigerian downstream oil sector have said the crude oil price and the exchange rate are the major determiners of the costs of refined petroleum products.
Recall that last week, the Dangote refinery cut down its ex-depot PMS price from N890 per litre to N825.
Similarly, the Nigerian National Petroleum Company Limited followed suit by matching Dangote’s price, indicating what many described as a price war.
