The Association of Owners of Crude Oil Refinery in Nigeria (Coran) said that due to the recent collapse of global crude oil prices, Advanced Sports Spirit (PMS) (PMS) is often called gasoline.
According to Coran, if crude oil prices continue to fall and eventually fall to $50 a barrel, gasoline prices may be sold at 350 litres per liter.
However, the association also raises concerns that gasoline prices in Nigeria may continue to rise despite falling crude oil prices and lower landing costs.
Coran is concerned that unless the Nigerian government continues its Naira-For-For-For transactions, gasoline prices will remain high even if crude oil prices fall further.
Crude oil prices fell sharply, with global benchmarks falling to $65 a barrel last week, the lowest since 2021.
The decline is largely attributed to a variety of factors, including the U.S. president’s import tariffs on countries that buy crude oil from Venezuela, and the unexpected decision by OPEC+ to increase oil production. These developments have caused a $10 drop in global oil prices, further exacerbating an already volatile market.
OilPrice.com highlights the combined impact of U.S. tariffs, intensified OPEC+ production and China’s retaliatory tariffs on U.S. goods, which have all led to a drop in crude oil prices.
As of Friday, ICE Brent crude oil was below $65 a barrel, while US Westexas Intermediate crude futures lost $4.96, or 7.4%, to close at $61.99.
Starting April 10, the escalating trade war between the United States and China has also imposed additional tariffs of 34% on all U.S. goods, further shocking investors the potential of a global recession.
According to Coran, the Nigerian market did not respond positively despite the global oil prices. A recent announcement from the Association of Major Energy Marketers in Nigeria (MEMAN) showed that as of Saturday, the landing cost of gasoline rose from 885 per liter to 865.
However, the former sales price of Lagos gasoline rose from 860 to 900 litres per liter, highlighting the failure of the Nigerian market to reflect the decline in crude oil costs.
Coran Propaganda Minister Eche Idoko said in an interview with Punch that gasoline prices in Nigeria have risen despite global crude oil prices.
He noted that the Naira picky policy aimed at ensuring energy security and stability has become the target of some people who oppose local refining efforts.
Idoko accused some middlemen of trying to prevent the success of local refineries and disrupt the Naira-For-Crude deal, which he believes is crucial to stabilizing the energy sector and the Naira.
Korran urged the government to continue to support Naira – a picky deal to prevent further instability in fuel prices and ensure that the country can meet its energy needs without relying on unqualified oil products to import.
According to him, the price of gasoline is about to reach 700 liters before stopping the Naira-choosy deal.
“The price will continue to rise because these middlemen are the elements that want to see local refining. When we turn to local refining in this country, we see the price of petroleum products dropping to as low as above 700. Boldly, we can even see its low as 350 because if crude oil drops to $50, we won’t sell gasoline for about 350.”
“Those are all possible. Unfortunately, we have middlemen who take pride in themselves as agents. They don’t have any plans in the game except that they have no risks because they have no risks. All they do is they connect Nigerian consumers with international traders and make money, then make money, and then disappear. So, they have no losses. He submitted.
Idoko said, “Anyone believes that in a regime that continues to import unqualified oil products, they will thwart Naira’s policy towards pickyness.
“I know, President Bra Tinub’s adviser, accidentally the Minister of Oil Resources, has been able to analyze where we were before the Naira-choosy policy; after the policy was implemented, we arrived at the position we arrived after the pilot test at Naira-Fort-Crude.
“I hope you know that, as we said, the rough prices in the international market are falling; at the same time, the prices of refined food in Nigeria are exploding. This is simply because of the FX effect. We simply say, it’s an easy thing. Nigerians provide crude oil in Naira, allowing Nigerians to enjoy the most among Nigerians, at least the largest oil, i.e., enjoy the largest oil to enjoy the largest oil.”
Asked to demonstrate why fuel prices rose when crude oil fell to $65 a barrel worldwide, a Cron spokesman blamed foreign exchange, logistics and middlemen for the impact.
“The price will keep going up due to FX and logistics effects. When you add it to the cost of FX, the cost of logistics will make the price go up. Of course, since you also have to accommodate the middleman for sale, the money involved.
“You know when to rent a house, you need an agency fee. If you increase the agency fee, the price goes up. That’s why you can’t be cheaper. You have the FX effect and you’ll be shipping in refined petroleum products. He added.
Idoko pointed out that refineries would not care about elements that want to promote or turn Naira’s picky deals into political issues, saying the policy’s success is affecting the income of some selfish people.
“We know why we’re going to invest and venture into the midstream segment. But we know what these elements want. We know what their interests are. We just leave it to Nigerians to judge that it’s the best. And I think the government knows the best policy, too. He submitted.
A spokesman for Colan regrets that local refineries must resort to foreign countries to purchase crude oil.
He added, “Unfortunately, our major refineries have to resort to other sources so that their investments won’t be closed. So many people have been talking to other producers to make their refineries rude. That’s a lot of factors, but a lot of factors, not a lot of factors, and they’re trying to play an important thing in energy security.”
