Oil Price Drops to $65: Nigerians Set to Pay Less at the Pump
There are indications that Nigerians will pay less for Premium Motor Spirit (PMS), also known as petrol, as the price of Brent crude dropped to $65 per barrel from $69.90 per barrel in the global market.
The price of Brent serves as a global benchmark for the prices of crude oils, influencing the prices of petroleum products worldwide.
The drop in crude prices is partly attributed to the announcement of new tariffs by U.S. President Donald Trump. Additionally, the decision by the Organization of Petroleum Exporting Countries (OPEC) and its allies to increase oil output by 410,000 barrels per day starting May 2025, far exceeding the 135,000 barrels originally planned, also contributed to the price reduction.
As a result, depot prices for several oil brands have started to reflect the decrease in crude prices. For instance, the depot prices for Mainland, A.Y.M., and Ever have dropped to N918 per liter from N920, and N919 per liter from N920, respectively. Additionally, the prices for Prudent, Eterna, and Soroman have fallen to N912 from N913 per liter, N897 from N900 per liter, and N915 from N916 per liter, respectively.
According to petroleumprice.ng, oil marketers are likely to adjust pump prices downwards as they receive new supplies, should the current market trends continue.
In a telephone interview, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, expressed optimism that this price reduction would lead to lower costs for transportation, goods, and services, provided the market conditions remain stable.
Meanwhile, OPEC’s report indicates that the eight OPEC+ countries, which previously made voluntary production adjustments, are expected to continue with production increases in May 2025. This adjustment is in line with the flexible and gradual return of the 2.2 million barrels per day voluntary reductions that began in April 2025.
These changes aim to support global oil market stability, with flexibility to pause or reverse the increases depending on evolving market conditions.
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