The Crude Oil Refinery Owners Association of Nigeria (CORAN) has said that a decline in crude oil prices could push petrol prices below N400 per litre. If crude oil drops to $50 per barrel, CORAN believes petrol prices could fall to N350 per litre.
Despite the global drop in crude oil prices, petrol prices in Nigeria continue to rise. Factors like foreign exchange issues, logistical challenges, and middlemen importing substandard products are driving this increase. The naira-for-crude policy, which allows payments for crude in naira, also plays a crucial role in stabilizing the naira and ensuring energy security. Without this policy, petrol prices could reach N700 per litre.
Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) are in a price war, which has led to lower petrol prices at their outlets. However, Dangote Refinery has suspended sales in naira due to issues with naira sales and dollar purchases. This move could increase petrol prices and weaken the naira as traders look for dollars.
In conclusion, while falling crude oil prices could lower petrol prices, domestic factors like exchange rate policies and market dynamics also affect what consumers pay.
