US–Iran Peace Deal Could Crash Petrol Price to N900 as Global Oil Market Slumps
The price of petrol in Nigeria may soon see a major relief, with industry operators suggesting that Premium Motor Spirit (PMS) could drop to as low as N900 per litre if a proposed peace agreement between the United States and Iran is successfully concluded. The expectation follows a sharp decline in global crude oil prices triggered by easing tensions in the Middle East.
Crude oil, which peaked above $120 per barrel during recent hostilities, has now fallen to around $87 per barrel, marking a significant shift in the global energy market. The decline has been linked to improving diplomatic signals, including plans to reopen the Strait of Hormuz, a critical shipping route for global oil supply.
In Nigeria, the impact of the earlier conflict was heavily felt at the pump, where petrol prices surged from about N830 to N1,300 per litre, while diesel and aviation fuel also recorded steep increases. However, with crude prices now trending downward, expectations are rising that fuel prices could soon reverse their upward trajectory.
Operators in the downstream sector, including sources linked to the Dangote Petroleum Refinery, say further price reductions are possible, though current pricing is still influenced by earlier high-cost crude stock purchases. One industry insider noted that while a drop to N900 per litre is realistic under sustained low crude prices, existing inventory costs may slow immediate adjustments.
The Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) also believes fuel could fall below N1,000 per litre if geopolitical stability returns fully and the Strait of Hormuz reopens. Meanwhile, global markets are watching closely as a reported US–Iran peace deal could reshape oil supply dynamics and potentially trigger another round of price competition among fuel marketers in Nigeria.
source: punch