Bismarck Rewane, Managing Director of Financial Derivatives Company Limited, has forecasted a continued decline in petrol prices until June 2025.
Speaking on Channels Television’s Business Morning, Rewane attributed the downward trend to increased competition between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL), both of which have recently lowered fuel costs. This price drop has brought relief to millions of Nigerians who rely on petrol for their daily energy needs.
Rewane noted that the reduction is expected to persist over the coming months, but prices may stabilize afterward depending on global oil and currency market trends.
“So, generally between now and June, we will see prices begin to decline. But after June, as things stabilize, we might see some price stability,” he explained.
The economist also highlighted the benefits of the ongoing price war between Dangote Refinery and NNPCL, stating that while such competition typically leads to short-term gains for consumers, the market will eventually correct itself.
“In a price war, nobody wins, but consumers benefit in the short run. Eventually, the market will find its balance. By June, price leadership will be firmly established,” he said.
Rewane further attributed Dangote Refinery’s ability to lower prices to its efficient production costs, which have given it a competitive edge in the market.
