The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) says the recent drop in global crude oil prices has sparked hopes of a corresponding reduction in petrol prices in Nigeria.

Billy Gillis-Harry, PETROAN’s national president, while reacting to recent developments in the oil and gas sector, lauded the federal government’s decision to continue the naira-for-crude policy.

The global crude oil trade trades between $61 and $63.

Brent crude futures were down three cents, or 0.05 per cent, at $63.30 a barrel by 0827 GMT, while U.S. West Texas Intermediate crude futures were up two cents, or 0.03 per cent, at $60.09.

Brent and WTI are poised to register weekly declines of 3.5 per cent and three per cent, respectively, having lost about 11 per cent last week.

Brent dipped below $60 a barrel at one point this week, its lowest since February 2021.

However, Mr Gillis-Harry said the core reason for the drop in the price of crude oil was the weakening global demand due to economic slowdowns in major economies.

He said this, coupled with increased production from non-OPEC countries, led to a supply glut in the market.

“This expectation is based on the understanding that local refineries will be able to produce petroleum products at a lower cost, which will then be reflected in the prices charged to
consumers.

“Additionally, President Donald Trump’s recent policy of imposing reciprocal tariffs has also contributed to the decline in crude oil prices, as it has dampened global economic growth and led to a recession, further depressing oil prices.

“As the global crude oil price continues to fluctuate, PETROAN is optimistic that the naira-for-crude policy will help to insulate the Nigerian economy from the volatility of the global market,” he said.

The federal government, through its Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative, announced on Wednesday that the initiative would continue indefinitely.

The move aims to sustain local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.

Mr Gillis-Harry said that with the naira-for-crude policy in place, the benefits of lower global crude prices would be passed on to consumers, leading to more affordable fuel prices.

“By reducing the country’s dependence on foreign exchange and promoting local refining, the policy is expected to lead to greater stability in the downstream sector and more affordable fuel prices for consumers.

“With the Federal Executive Council’s directive to fully implement the policy, PETROAN is hopeful that the benefits of lower global crude prices will soon be felt by Nigerian consumers.

“The policy’s objectives include boosting local refining capacity, enhancing domestic refining and investment in infrastructure, improving energy security, strengthening Nigeria’s energy independence and reducing reliance on foreign exchange.

“It includes stabilising the foreign exchange market and decreasing dollar demand in domestic petroleum transactions,” he said.

He thanked all the Ministry of Petroleum Resources, agencies, and stakeholders for championing roundtable talks to ensure the affordability and price stability of petroleum products in Nigeria.

(NAN)