₦airaland Forum

THE price of Bonny Light, Nigeria’s premium oil grade, yesterday, dropped by 5.09 percent to $59.62 per barrel in the global market at the backdrop of the on-going ripples created by the tariff war that has followed the series of tariff hikes announced by the United States of America early this week.

The oil price was also hit by the decision of the Organisation of Petroleum Exporting Countries (OPEC) and its allies to increase oil production by 411,000 barrels per day (bpd) in May, 2025.

Experts said the development would negatively impact the nation’s N54.99 trillion 2025 budget, which is based on oil price of $75 per barrel and 2.06 million barrels per day (bpd).

This indicates a massive setback in terms of price and output as the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, puts the output, including Condensate at 1,671,953 bpd in February 2025.

In an interview with Vanguard, Chief Executive Officer, Centre for the Promotion of Private Enterprise, CPPE, Dr. Muda Yusuf, said: “This is a serious problem as we have just completed the first quarter of the year. We have three more quarters to go, meaning that we have serious issues in our hands, if the situation persists.

“It poses a very serious challenge to our economic management team. First, it poses a risk to our revenue. Second, it poses a risk to our exchange rate. Our economy is dependent to foreign exchange earnings. The low oil price would put pressure on foreign exchange earnings. We all know the implications on a weak exchange rate on the economy.”

However, findings by Vanguard indicated that the low crude oil prices may culminate in low prices of petroleum products in the domestic market.

The findings showed that major players in Nigeria’s downstream sector would announce a reduction in the prices of Premium Motor Spirit, PMS, also known as petrol.

In an interview with Energy Vanguard, the Chairman of the Lagos State Chapter of Petroleum Products Retail Outlet Owners Association of Nigeria, PETROAN, Ehimen Joseph, said: “This should be expected in a deregulated market. If the fall in crude oil prices persists for a while, it would impact developments in the value chain.”


Similarly, another operator, who pleaded anonymity, said: “Everything is pointing towards pump price reduction this week. One of the nation’s refineries has stopped printing its petrol tickets.

“There are claims there would be a petrol price review before Tuesday. All those who paid for the program are likely to get a discount on the new price, and then tickets will be issued.

“This is a reflection of the general fall in the prices of crude oil in the international market. Crude oil prices started falling after the Organisation of Oil Producing Countries and its allies, also known as OPEC+ decided to increase oil output by 410,000 barrels per day starting in May 2025.”

According to petroleum price.ng, the depot prices of Mainland, A.Y.M and Ever have dropped to N918 per litre from N920 and N919 from N920 per litre, respectively.

Also, the depot prices of Prudent, Eterna and Soroman have dropped to N912 from N913 per litre, N897 from N900 per litre and N915 from N916 per litre, respectively.

Meanwhile, in a report, OPEC stated: “The eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, met virtually on 3 April 2025, to review global market conditions and outlook”.

ogododo:
https://www.vanguardngr.com/2025/04/crude-oil-price-crashes-puts-2025-fg-revenue-target-in-jeopardy-2/

Deltafirstson:
Although the pump price of fuel was N197 when President Bola Tinubu took over on May 29, 2023, the product now sells for N617 per litre – less than two months after.

In his inaugural address, Tinubu announced that subsidy was gone, fulfilling a promise that all leading presidential candidates made during the campaign.

However, pump price of fuel hit N537 per litre days after Tinubu ended subsidy.

On Tuesday, the price climbed further to N617, a development that the Nigerian National Petroleum Corporation Limited (NNPCL) attributed to “market forces”.

Nigerians have been lamenting the hardship occasioned by fuel price hike. Amid the lamentation, a video where Tinubu campaigned to slash the price of fuel went into circulation.

Checks by Daily Trust affirmed the authenticity of the video uploaded on the YouTube page of Channels Television.

At his campaign rally in Abeokuta, Ogun State capital, on January 25, 2023, Tinubu spoke on a number of issues, but those of fuel scarcity and naira redesign made the headlines.

However, Tinubu who spoke in Yoruba language, also assured the crowd that though people were saying petrol price would hit N200, it would be reviewed downward under him.

“The great Nigerian youths, the great Nigerian students, the confident Nigerian youths. This is a revolution. This election is a revolution. They are plotting, but they will fail. They said fuel price will increase and reach N200 per litre. Go and relax, we will bring it down,” he had said in the 7th minute of the video.

King Wasiu Ayinde Marshall, a Fuji musician who performed at the rally, interrupted the president’s speech with chants as the crowd cheered.

On the campaign podium with the president were Vice-President Kashim Shettima; Pa Bisi Akande, interim National Chairman of the APC; Femi Gbajabiamila, Chief of Staff to the President; Senator Gbenga Daniel; among other bigwigs of the ruling party.

Tinubu went further to say Nigerians would defy the acute fuel scarcity at the time and trek to cast their votes.

“The great Nigerian youths, the great Nigerian students, the confident Nigerian youths. This is a revolution. This election is a revolution. They are plotting, but they will fail. They said fuel price will increase and reach N200/N500 per litre. Go and relax, we will crash the prices,” he had said.

https://dailytrust.com/breaking-video-of-tinubu-campaigning-to-crash-fuel-

he had said in the 7th minute of the video.

https://www.youtube.com/watch?v=4JH8CC_JdUA

ogododo:
https://www.vanguardngr.com/2025/04/crude-oil-price-crashes-puts-2025-fg-revenue-target-in-jeopardy-2/

fnep2smooth:
So what should we do as an average citizen

anthonykezy:
Oil slump: Bring down fuel price immediately, Fashola tells FG ON DECEMBER 7, 2014

Lagos—As the global oil prices slid further downward, Governor Babatunde Fashola of Lagos State, yesterday, asked the Federal Government to review downward the pump prices of Premium Motor Spirit, PMS,  from N97 per litre in the country in tandem with the slump in world oil price.

The Organisation of Petroleum Exporting Countries, OPEC, had last Friday, on its website pegged the oil price at $66.27 per barrel. Fashola who blasted FG for its reluctance to adjust the pump price of  PMS, made the remarks while addressing hundreds of youths at the  Lagos State and After School  Graduation Development Centre,  AGDC, IGNITE Employability Project 5, Ikeja. He lamented that Nigerians were not receiving fair treatment from the central government like others in oil producing nation.

Fashola said, “Now we should be enjoying cheap fuel if the price of oil has dropped globally. Even as we import the product, a major component has reduced in price and while this has reduced, the pump price of fuel in the country still remains the same. “Then something is wrong. If the price increases in the country when the price of oil goes up globally, then it should also reduce when the price of oil drops. “

I understand that I am not an economist; they (Federal Government) are the economists. But I have some logic and common sense to ask critical questions. For instance, if one buy flour at N10 per kilogram, and the bread was sold at N1 per loaf. If the price of flour drops, the price of the bread should also change,” Fashola added. The governor, therefore, urged President Goodluck Jonathan led administration to follow the footstep of other countries that have reduced the pump price of oil products for their citizens.

Source: http://www.vanguardngr.com/2014/12/oil-slump-bring-fuel-price-immediately-fashola-tells-fg-2/

anonimi:
This is good news for ebilokan to achieve his promise of crashing the price of petrol and the cascading effect on inflation.

God is great, walahi!
Good observation.

anonimi:
This is good news for ebilokan to achieve his promise of crashing the price of petrol and the cascading effect on inflation.

God is great, walahi!
Good observation.

ebonge1:
What wrong with us going to farm.
Just empower each community with at least two tractors and see magic in 6 months.

Hisroyalbadmeat:
Diversify to Agro/tech industries, simple,and if the federal government wants to put off pressure on itself, allow States manage their resources and pay a percentage to the centre,