The Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, has predicted that the price of Premium Motor Spirit (PMS), commonly known as petrol, will continue to drop until June 2025.
Speaking on Channels Television’s Business Morning on Tuesday, Rewane attributed the downward trend to the ongoing price competition between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL), emphasizing that consumers stand to benefit the most.
“So, generally, between now and June, we will see prices begin to decline. But after June, as things stabilize, depending on what happens in the global oil and currency market, we might begin to see some stabilization,” Rewane stated.
He further explained that while a price war has no clear winners among competitors, consumers gain in the short term before the market eventually corrects itself.
“In a price war, nobody wins; the consumers win in the short run, and then eventually, the market goes back to where it should be. But, at the end of the day, between now and June, the price leadership will be firmly established,” he added.
Rewane also linked Dangote Refinery’s reduction in petrol pump prices to improved production cost efficiency and other operational factors.
Dangote Refinery recently announced new petrol prices, with MRS Holdings stations selling at ₦860 per litre in Lagos, ₦870 in the South-West, ₦880 in the North, and ₦890 in the South-South and South-East. Meanwhile, Ardova Petroleum (AP) and Heyden stations are offering petrol at ₦865 per litre in Lagos, ₦875 in the South-West, ₦885 in the North, and ₦895 in the South-South and South-East.
In response, the NNPCL lowered its pump price to ₦860 per litre across its Lagos stations, further intensifying the competition in the downstream sector.
