The price of PMS might decrease even more due to the decline in crude oil prices.
Economist suggests, given the present market conditions, the price ought to be reduced to less than N700 per litre.
Oil prices declined by approximately two percent, reaching a 12-week low this week following news that OPEC+ intends to move forward with a planned increase in oil production in April.
Brent futures dropped by $1.19, representing a 1.6% decrease, closing at $71.62 per barrel. Meanwhile, U.S. West Texas Intermediate crude declined by $1.39, or 2%, settling at $68.37 per barrel.
Economist Paul Alaje stated that the reduction in petrol prices is viable and suggested that, given the present market conditions, the price should be reduced to below N700 per litre.
Alaje noted that although prices are currently decreasing, a significant concern would arise if crude oil prices were to escalate on the international market as a result of a global crisis.
He said, “It is sustainable to reduce petrol prices to N700 based on today’s reality of the exchange rate. The challenge we may have is a global crisis that makes the price of crude oil go up. If that happens, we are going to see the difference. But for now, we are seeing relative stability.
“As of today, our computation reveals that PMS should be around N795 to N820 per litre.”
ven more due to the decline in crude oil prices.
Economist suggests that given the present market conditions, the price ought to be reduced to less than N700 per litre.
Oil prices declined by approximately two percent, reaching a 12-week low this week following news that OPEC+ intends to move forward with a planned increase in oil production in April.
Brent futures dropped by $1.19, representing a 1.6% decrease, closing at $71.62 per barrel. Meanwhile, U.S. West Texas Intermediate crude declined by $1.39, or 2%, settling at $68.37 per barrel.
Economist Paul Alaje stated that the reduction in petrol prices is viable and suggested that, given the present market conditions, the price should be reduced to below N700 per litre.
Alaje noted that although prices are currently decreasing, a significant concern would arise if crude oil prices were to escalate on the international market as a result of a global crisis.
He said, “It is sustainable to reduce petrol prices to N700 based on today’s reality of the exchange rate. The challenge we may have is a global crisis that makes the price of crude oil go up. If that happens, we are going to see the difference. But for now, we are seeing relative stability.
“As of today, our computation reveals that PMS should be around N795 to N820 per litre.”
