Petrol prices fall first time in 9 months on improved supply

The typical worth per litre paid by Nigerians for petrol has fallen for the primary time in 9 months to N254 in April this yr, in response to the Nationwide Bureau of Statistics (NBS), a growth analyst pin on regular provide and a fall in crude oil costs.

Information obtained from NBS reveals that on a month-on-month foundation, it decreased by 3.87 p.c from N263.76 in March this yr. On a year-on-year foundation, it elevated by 47.18 p.c from N172.61.

Mike Osatuyi, the nationwide operations controller on the Unbiased Petroleum Entrepreneurs Affiliation of Nigeria, instructed BusinessDay that the drop in petrol costs is because of a constant provide of the product and a fall in crude oil costs final month.

“If there’s a constant provide of petrol within the nation, the product worth will fall. This implies the federal government is constant, and there’s no problem in supplying the product. Additionally, the drop in petrol costs was influenced by the autumn in crude oil costs throughout that interval, “he mentioned.

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In direction of the tip of April and the primary week of Might, Brent crude oil costs fell by 17 p.c from $87.42 on April 12 to $71.94 on Might 4. When Brent crude oil costs drop on the worldwide market, it typically results in a lower within the worth of petrol in Nigeria. It’s because the price of crude oil represents a good portion of the general manufacturing price of petrol.

In accordance with Osatuyi, the drop in petrol costs might proceed, but it surely relies on insurance policies by the incoming administration. He added that the controversial petrol subsidy shall be eliminated as promised by President-Elect, Asiwaju Bola Ahmed Tinubu in his manifesto.

In accordance with NBS, Taraba State had the best common retail worth for petrol with N320, adopted by Imo with N310.55 and Jigawa with N305.00. Then again, Sokoto recorded the bottom common retail worth for petrol with N195, adopted by Benue with N198.13 and Kogi with N206.11.

As well as, evaluation by zone confirmed that the South-East recorded the best common retail worth in April 2023 with N291.15, whereas the North-Central had the bottom with N208.88. The value of petrol differs in several states or areas of the nation on account of variations in distribution prices, taxes, and native market dynamics.