Bismarck Rewane, the Managing Director of Financial Derivatives Company Limited, has forecasted that the price of premium motor spirit (PMS), commonly known as petrol, will continue to decrease until June 2025.
Recently, both Dangote Refinery and the Nigeria National Petroleum Company Limited (NNPCL) have lowered the cost of petrol, providing relief to millions of Nigerians who rely on fuel for energy.
Rewane stated that the current reduction in fuel prices is expected to persist until mid-2025.
“So, generally, we’ll see prices continue to drop until June. After that, as things stabilize, depending on what happens in the global oil and currency markets, we might see some stabilization,” Rewane explained on Tuesday’s edition of Channels Television’s *Business Morning*.
He noted that the price competition between Dangote Refinery and NNPCL will ultimately benefit consumers in the short term.
“In a price war, the consumers win in the short run, but eventually, the market will settle back to its usual position. However, by June, the price leadership will be clearly established,” he added.
Rewane attributed Dangote Refinery’s price reduction to factors such as production cost efficiency.
Recently, Dangote Refinery lowered its gantry price from ₦890 to ₦825 per litre and pledged to refund customers who purchased fuel at higher prices from its key partners.
“For MRS Holdings stations, petrol will be sold at ₦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,” stated the management of Dangote Refinery.
The 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 also lowered its pump price to ₦860 per litre across its Lagos stations on Monday, though it has yet to officially announce the change.
The removal of the fuel subsidy was announced by President Bola Tinubu during his inauguration in May 2023, leading to an initial spike in petrol prices, which were previously under ₦200 per litre.