Marketers predicts petrol price drop below N800 per liter

Marketers predicts petrol price drop below N800 per liter

CHIGOZIE AMADI

Some oil marketer has predicted that petrol prices may soon fall below N800 per liter, following a continued decline in gasoline prices.

The marketer shared this insight with the Business intelligence on Friday in Lagos.

According to the source, the drop in prices is largely due to the continued allowance of imports.

“Our take is that prices are being forced down because imports are still being allowed.

“The authorities must continue to monitor imports to ensure that only quality products are brought in, while balancing the country’s consumption with local production and imports,” the marketers said.

The source emphasised that local refining of crude oil is a step in the right direction for Nigeria, but highlighted the need for incentives to encourage local refiners to keep their prices as low as possible through controlled imports.

“Local refineries also have the option of exporting excess production to earn foreign exchange,” the marketers added.

They said that while the exact cause of the price reduction remains debated, with some pointing to increased local refining capacity and others to the Crude-for-Naira initiative, the general consensus is that the falling prices are a welcome relief for consumers.

The marketers said that this reduction is expected to ease inflationary pressures within the economy.

The marketers further stated, “The main reason for the price drop is the healthy competition brought about by the deregulation of the downstream sector, something we have long argued in favor of.

” Unfortunately, many stakeholders, including labor unions, resisted this policy, almost leading the country to bankruptcy before it was finally implemented.

However, the marketer also cautioned that prices could rise again in the deregulated environment.

“To keep prices low, we need strong competition within the industry. No single entity should dominate supply to the country.

” Local refineries must strive to keep prices low, or else the removal of competition could lead to higher prices.”

‘The prediction of a price drop below N800 is seen as a positive development for consumers, providing some relief in an otherwise challenging economic landscape,” they added.