Both Dangote Refinery and the Nigeria National Petroleum Company Limited (NNPCL) have crashed the cost of the essential commodity in recent weeks.
Rewane attributed the reduction in fuel price to a fall in global crude oil price.
Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, has predicted that the cost of premium motor spirit also known as petrol will continue to decline until June 2025.
Both Dangote Refinery and the Nigeria National Petroluem Company Limited (NNPCL) have crashed the cost of the essential commodity in recent weeks, easing the pressure on millions of Nigerians who depend on fuel for their energy needs.
But Rewane says the recent reduction in the pump price of the product is expected to continue until mid-year.
“So, generally between now and June, we will see prices begin to decline. But after June as things stabilize, depending on what happens in the global oil and currency market, we might begin to see some stabilisation,” Rewane said on Tuesday’s edition of Channels Television’s Business Morning.
According to him, the price war between Dangote Refinery and NNPCL will benefit the consumer more.
“In a price war, nobody wins, the consumers win in the short run then eventually the market goes back to where it should be. But, at the end of the day, between now and June, the price leadership will be firmly established,” Rewane said.
He attributed Dangote Refinery’s reduction in the pump price of petrol to production cost efficiency.
