Lagos, Nigeria – January 5, 2025: Industry experts have predicted a significant reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, in 2025. According to the Independent Petroleum Marketers Association of Nigeria (IPMAN), petrol prices may drop below ₦500 per litre, a substantial decrease from the current range of ₦900 to ₦950 per litre.
The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Ukadike Chineduexpressed optimism about the future of petrol prices, stating, “The increased refining capacity and deregulation policies are already showing positive effects. We expect petrol prices to drop significantly, benefiting consumers across the country.”
Key Factors that could Drive the Price Reduction:
1. Increased Local Refining Capacity: The commencement of operations at the Port Harcourt and Warri refineries, along with 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.
2. Deregulation of the Downstream Sector: The Federal Government’s deregulation policy has introduced competition among producers, driving prices lower. Ukadike Chinedu, the National Publicity Secretary of IPMAN, noted that the entry of multiple players is fostering healthy price competition. The policy of selling crude oil to refineries in exchange for payment in naira is expected to reduce inflation and ease foreign exchange pressures.
3. Stable Foreign Exchange Rates: The Federal Government’s foreign exchange policy is yielding positive results, with the dollar exchanging for less than ₦1,800. This stability is crucial for maintaining lower petrol prices.
As the year progresses, Nigerians are hopeful that these developments will lead to more affordable fuel prices, easing the financial burden on households and businesses alike.
