Dangote, NNPC to Crash Petrol Prices Again as Crude Oil Drops to $65 Per Barrel
- Dangote and NNPC may reverse their petrol prices due to the fall in crude oil prices to $65 per barrel, the lowest since 2021
- The crash in crude prices was blamed on market shocks caused by President Trump’s tariffs and OPEC’s plan to raise output
- Already, depots have reduced petrol prices from N930 to N912 and N913, respectively, following the crude drop
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
There are signs that Nigerians may pay less at the pumps for petrol following the crash in the Brent crude price, which dropped to $65 per barrel from $69.90 in the global market.
Brent, the global benchmark for crude prices, fell on Friday, April 4, 2025, as President Donald Trump embarked on a tariff hike spree.
Source: Getty Images
OPEC’s plans to raise production
Experts say the announcement led to a global stock price crash, affecting oil prices, and Trump’s call for the Organisation of Petroleum Exporting Countries (OPEC) to raise crude output also affected prices.
Findings showed that OPEC and its allies mulled increasing crude production by 410,000 daily by May 2025, above the 135,000 barrels.
Impact of falling oil prices on Nigeria
Nigerians have shared mixed feelings about the recent drop in crude oil prices, which is one of the country’s main sources of foreign exchange and government income.
Some see it as both good and bad news. On one hand, it could lead to cheaper fuel for consumers.
On the other hand, it poses a serious challenge for the government, which based its 2025 budget on oil selling at $75 per barrel.
Experts say that while the lower oil prices may benefit fuel users, it creates a big problem for the country’s finances.
Filling stations and depots drop prices
Following the crude price crash, petrol stations in Nigeria have reduced their pump costs to N918 from N920 per litre.
Also, depot prices have crashed to between N912 and N913 per litre, respectively.
Read also
Refiners: Petrol prices can drop to N350 per litre at filling stations, 3 issues identified
Recall that Dangote Refinery raised its petrol prices from N860 at its partner retail outlets to N930 per litre, which analysts blamed on the collapse of the naira-for-crude deal between domestic refineries and the Nigerian government.
The mega refinery had told oil marketers that it was pausing the sales of petroleum products in naira due to the deal’s collapse. The decision resulted in an instant increase in petrol prices by marketers.
Also, the Nigerian National Petroleum Company Limited (NNPC) announced a petrol price increase from N860 per litre to N925 in Lagos and N960 in the north.
Though NNPC did not explain the reason for the price hikes, analysts said it was due to the then-rising crude prices, which stood at $73.73 per barrel.
Dangote Refinery and NNPC may reverse prices
Analysts believe oil marketers would likely adjust their prices as they get new supplies.
Vanguard quoted Billy Gillis-Harry, president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), saying the development would end in low-cost transportation of goods and services.
OPEC members meet
Meanwhile, OPEC said in a report that eight OPEC+ countries, which announced additional voluntary adjustments in April and November 2023, met virtually to review the global market outlook.
The countries include Russia, Saudi Arabia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman.
The report stated that following healthy market conditions and a positive outlook, the cartel will start a gradual and flexible return to the 2.2 million barrels per day voluntary adjustment from April 1, 2025.
It stated that the eight countries would implement a production adjustment of 411,000 barrels per day, equivalent to three monthly increases in May 2025.
Source: Getty Images
OPEC said the increase may be halted or reversed depending on evolving market conditions.
It said the flexibility will allow the group to continue to support market stability.
Oil marketers predict new petrol prices
Legit.ng earlier reported that there was tension in the downstream oil sector as players await the decision of the Nigerian government on the naira-for-crude deal between the NNPC and the Dangote Refinery.
The six-month deal, which started in October last year, ends on March 31, 2025.
Stakeholders are eagerly waiting for the deal's extension or a halt as the parties involved have yet to agree.
This article has been updated by head of business desk, Victor Enengedi, with additional information.
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Proofreading by Nkem Ikeke, copy editor at Legit.ng.
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Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng
Nkem Ikeke (Copy editor) Nkem Ikeke is currently a copy editor who also writes for the politics and current affairs desk on weekends. She holds a Bachelor of Arts in Mass Communication degree from the University of Nigeria, Nsukka (2010), and has over 10 years of work experience in the media industry (Reporter, News Agency of Nigeria). Email: n.ikeke@corp.legit.ng
