Global crude oil prices recorded another decline on Monday, raising fresh expectations that petrol pump prices could come down in Nigeria.
A market survey by DAILY POST showed that Brent crude fell to about $101.50 per barrel, while West Texas Intermediate (WTI) dropped to approximately $98 per barrel at the time of reporting.
The latest figures represent declines of 2.29 per cent for Brent crude and 2.37 per cent for WTI, compared with their respective prices recorded over the weekend.
The fall in crude prices comes despite the ongoing conflict in the Middle East, which has disrupted shipping activity through the strategically important Strait of Hormuz.
Data indicated that the number of commodity vessels passing through the waterway dropped to about 12, compared with roughly 35 vessels previously. However, tanker traffic has reportedly improved around Saudi Arabia.
Petrol Prices Remain High in Nigeria
Despite the decline in international crude prices, petrol pump prices across Nigeria have remained relatively high.
In Abuja, some filling stations were selling petrol between N1,395 and N1,450 per litre on Monday, although some retailers reportedly reduced their prices over the weekend.
The continued high pump prices have kept attention on developments in the international oil market, particularly because crude oil prices are a major factor in the economics of petroleum products.
DAILY POST had earlier reported that some filling stations reduced their petrol prices amid growing competition within Nigeria’s downstream petroleum sector.
The latest decline in crude prices could therefore increase expectations among motorists and consumers that further reductions in petrol prices may follow, although the actual pump price will also depend on other factors affecting the Nigerian downstream market.
