MARKETERS: Petrol Prices May Crash Below ₦500 Per Litre In 2025—-Industry experts on Saturday, predicted a significant reduction in the price of Premium Motor Spirit (PMS), popularly known as petrol, in 2025, with prices potentially dropping below ₦500 per litre.
The current price of petrol ranges between ₦900 and ₦950 per litre across various fuel stations.
The anticipated price drop is attributed to a robust downstream sector driven by the Federal Government’s deregulation policy, stable foreign exchange rates, and increased domestic refining capacity.
Key Factors Driving Price Reduction
Increased Local Refining Capacity: The commencement of operations at the Port Harcourt and Warri refineries, alongside the Dangote Refinery, is expected to boost local production and reduce dependence on imports.
The Dangote Refinery currently injects seven million litres of petrol daily into the domestic market.
The Port Harcourt Refinery, which began operations over a month ago, produces 1.4 million litres of petrol daily.
The Warri Refinery, operating at 60% capacity, focuses on producing kerosene, diesel, and naphtha.
Deregulation of the Downstream Sector: The deregulation policy has introduced competition among producers, driving prices lower.
Industry experts, who spoke to Saturday Sun, noted that petrol, which currently sells for between ₦900 and ₦950 in many fuel stations, may have its price further crashing to as low as ₦500 a litre in the course of the year.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Ukadike Chinedu, in an interview with Saturday Sun, said the entry of multiple players is already fostering healthy price competition.
He noted that the Federal Government’s policy of selling crude oil to refineries in exchange for payment in naira is expected to reduce inflation and ease foreign exchange pressures.
