Bismarck Rewane, Managing Director of Financial Derivatives Company Limited, believes that the price of premium motor spirit, often known as fuel, would continue to fall until June 2025.
In recent weeks, both Dangote Refinery and the Nigeria National Petroleum Company Limited (NNPCL) have reduced the cost of the critical commodity, relieving pressure on millions of Nigerians who rely on fuel for energy.
However, Rewane believes that the recent fall in the product’s pump price will continue until mid-year.
“So, generally between now and June, we will see prices begin to decline. But after June, as things stabilise, depending on what happens in the global oil and currency market, we might begin to see some stabilisation,” Rewane said on Tuesday’s edition of Channels Television’s Business Morning.
According to him, the price war between Dangote Refinery and NNPCL will benefit the consumer more.
“In a price war, nobody wins; the consumers win in the short run, and then eventually the market goes back to where it should be. But, at the end of the day, between now and June, the price leadership will be firmly established,” Rewane said.
He attributed Dangote Refinery’s reduction in the pump price of petrol to production cost efficiency, among other factors.
The Dangote Refinery reduced the gantry price from ₦890 to ₦825 per litre. It also offered to repay clients who purchased higher-priced fuel from its key partners.
“For MRS Holdings stations, it will sell for ₦860 per litre in Lagos, ₦870 per litre in the South-West, ₦880 per litre in the North, and ₦890 per litre in the South-South and South-East, respectively,” the management said of Dangote Refinery said.
“The same product will also be available at the following prices in AP (Ardova Petroleum) and Heyden stations: ₦865 per litre in Lagos, ₦875 per litre in the South-West, ₦885 per litre in the North, and ₦895 per litre in the South-South and South-East.”
The NNPCL dropped pump prices to ₦860 per litre in Lagos State on Monday, but has yet to publish an official notification.
