Nigerians may soon pay less for Premium Motor Spirit (PMS), commonly known as petrol, as international crude oil prices have dropped and OPEC+ moves to increase production.
The price of Brent crude, a major global benchmark, has fallen from $69.90 to $65 per barrel, raising hopes of a reduction in local fuel prices. The decline is attributed to growing market pressure following U.S. President Donald Trump’s announcement of sweeping tariffs, as well as increased oil output by the Organisation of Petroleum Exporting Countries and its allies (OPEC+).
Depot Prices Already Falling
Vanguard’s checks reveal that depot prices across major fuel distributors have begun to reflect the global trend. For instance, the price at Mainland depot has dropped to ₦918 per litre from ₦920, while A.Y.M and Ever now sell at ₦919 from ₦920 per litre.
Similarly, Prudent depot has reduced prices to ₦912 from ₦913, Eterna to ₦897 from ₦900, and Soroman to ₦915 from ₦916 per litre. According to petroleumprice.ng, if the trend continues, oil marketers are expected to lower their pump prices as new stock arrives next week.
Transport and Living Costs May Ease
President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said the ongoing market shift could reduce the cost of transportation, goods, and services if maintained. Speaking to Financial Vanguard, he expressed optimism that market fundamentals support a sustained price decline.
OPEC+ Increases Production
Meanwhile, OPEC+ announced a decision to raise oil production by 411,000 barrels per day starting in May 2025. This is a significant jump from the initially planned increase of 135,000 barrels per day.
In a statement, OPEC said the eight member countries — including Saudi Arabia, Russia, Iraq, UAE, and others — reached the agreement during a virtual meeting on April 3, 2025. The group reaffirmed its gradual and flexible return to pre-cut output levels, adding that the plan allows room to pause or reverse production hikes depending on market dynamics.
The output boost aims to support global oil market stability while allowing countries to compensate for past overproduction. Participating nations are expected to submit updated compensation plans to the OPEC Secretariat by April 15.
If the market momentum continues, Nigerians may soon experience some relief at the pump — and potentially in their daily expenses.
