- The price of petrol has been predicted to be between N570-580 by the middle of 2024 based on two factors
- According to Barrister Titilope Anifowoshe, the continuous strength of the naira against the dollar could influence the reduction in the price of the commodity
- Anifowoshe added that the entry of the Dangote refinery would also have a significant effect on the price of fuel in Nigeria in the long run
Nigerians have been told about the possibility of buying petrol from N570-580 by mid-2024, considering the growth of the naira against the dollar in the forex market.
Titilope Anifowoshe, a legal practitioner and entrepreneur, gave the prediction in an exclusive interview with Legit.ng while breaking down the oil and gas market industry.
Photo Credit: Getty Images
Source: Getty Images
Why Dangote refinery could influence fuel price
The Barrister also cited the entry of the Dangote Refinery in the petroleum industry as a major factor that could influence the reduction in the price of the commodity in the Nigerian market.
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According to Anifowoshe:
“The recent developments regarding the dollar and Dangote’s entry into the fuel market are likely to positively impact the price of petrol (PMS) in Nigeria. The reduction in the cost of diesel, used in the logistics chain for fuel transportation, is expected to contribute to a decrease in the overall landing cost of petrol and, subsequently, the pump price.
“With Dangote’s refinery coming online, there will be reduced reliance on imported crude oil and birthing products from overseas, which will further reduce transportation and logistics costs. These factors, coupled with a potential strengthening of the Naira in the exchange market, could significantly reduce the pump price of petrol.
“Based on these developments, it is plausible to predict that we may see a petrol pump price reduction to around N570-N580 per litre by June. However, it’s important to note that various factors influence fuel prices, including international oil prices, government policies, and market dynamics. Therefore, while this prediction is optimistic, it is subject to change based on prevailing economic conditions and government decisions.”
Naira vs dollar: Shettim commends Tinubu
Legit.ng earlier reported that Kashim Shettima, the vice president of Nigeria, has praised President Bola Tinubu’s leadership in managing the country’s currency.
The vice president also expressed optimism that the dollar would still fall to the naira as the policy would continue to be effective.
Shettima said some people were celebrating when Tinubu removed the fuel subsidy and ensured the unification of the multiple exchange rate.
Source: Legit.ng
