Nigerians may soon experience a reduction in the cost of petrol and other goods following a sharp drop in global crude oil prices, with Brent crude falling to $65.58 per barrel—the lowest since April 2021. This marks a 7 percent decline from $69.90, while the US West Texas Intermediate (WTI) also dropped by 7.35 percent to $62.03 per barrel.
Brent crude serves as the global benchmark for pricing crude oil and petroleum products. A decrease in its price usually results in lower fuel and commodity prices, especially in import-dependent economies like Nigeria.
According to Reuters, the dip in oil prices followed rising global economic concerns, intensified by China’s decision to increase tariffs on U.S. goods in response to new trade measures. This development raised fears of a global recession. On April 2, U.S. President Donald Trump imposed sweeping tariffs on global imports, including a 14 percent tariff on Nigerian goods.
The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, also warned that the new U.S. tariffs would have serious consequences for global trade and economic growth.
Depot Prices Already Dropping
Depot owners have already begun to adjust their petrol prices downward in response to the global trend. According to data from petroleumprice.ng, the following adjustments have been recorded:
- Mainland: from ₦920 to ₦918 per litre
- A.Y.M: from ₦920 to ₦919 per litre
- Ever: from ₦920 to ₦918 per litre
- Prudent: from ₦913 to ₦912 per litre
- Eterna: from ₦900 to ₦897 per litre
- Soroman: from ₦916 to ₦915 per litre
Petrol marketers are expected to reduce pump prices in the coming days as they take delivery of new, lower-cost supplies.
President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, expressed optimism in a phone interview with Financial Vanguard. He noted that the continued fall in global oil prices could lead to reduced transportation costs, as well as lower prices for goods and services across the country.
OPEC Increases Production Slightly
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have agreed to implement a gradual increase in oil production.
A virtual meeting held on April 3, 2025, saw eight member countries—including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman—agree to add 411,000 barrels per day in May 2025. This move is part of a phased return of the previously reduced 2.2 million barrels per day, aimed at maintaining market stability.
OPEC emphasized that the gradual increase may be paused or reversed, depending on how market conditions evolve. The group also reiterated its commitment to balancing oil supply and demand while ensuring member nations fulfill compensation plans for past overproduction.
If current trends hold, Nigerians may soon enjoy much-needed relief at the pumps and in the cost of living.
