Petrol Price Likely To Drop- UN

The price of Premium Motor Spirit, PMS, also known as petrol will decline this year, according to the United Nations.

The global body prediction was contained in the United Nations World Economic Situation and Prospects, WESP, report for 2024.

According to the UN, the price cut would come as a result of domestic refining of the product by some local refineries.

“Efforts to increase in-country oil refining capacity would likely reduce domestic fuel costs in 2024 and beyond,” the report said.a

Recall that Dangote Refineries has promised to start refining petrochemical products at its multi-billion naira refinery in Lagos, after receiving 6 million barrel of crude oil from the Nigerian National Petroleum Company Limited, NNPCL.

The sixth tranche of crude was delivered to the refinery on Monday.

Akin Omole, the Managing Director of Dangote Ports Operations, had told journalists at the Dangote Quay, Ibeju-Lekki, Lagos that the Refinery was ready to take of once the 6 million barrels of crude is delivered.

He said, “Once the 6 million barrels are fully delivered, it will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and Liquefied Petroleum Gas (LPG) before subsequently progressing to the production of Premium Motor Spirit (PMS).”

Petrol is currently sold in the country for N600 or more per litre, and marketers of the product recently suggested that the price should move up to N1200 per litre due to the foreign exchange scarcity.