The price of crude oil, yesterday, dropped marginally to $73 per barrel from $74 per barrel in the international market as the Israel-Iran conflict tension eases.
The tension eased following Iran's indication of interest to halt hostilities and resume negotiations over its nuclear program with Israel.
Consequently, the price of Brent, usually used to benchmark other prices, dropped to $73.06 per barrel from over $74.20 per barrel, yesterday, indicating a decrease of 1.5 per cent.
Depot prices hit N930 per litre
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However, before the easing of tension, the prices of Premium Motor Spirit, PMS, also known as petrol had risen to between N838 per litre and N920 per litre in Nigeria's domestic market.
Fynefield made the highest adjustment to N930 per litre from N867 per litre, indicating an increase of 7.27 per cent while Dangote Petroleum Refinery rather reduced its gantry price to N838 per litre from N840 per litre, showing a decrease of 0.24 per cent.
Rainoil (Lagos) increased its depot price to N900 per litre from N850 per litre, indicating an increase of 5.88 per cent while Mainland increased its price to N920 per litre from N869 per litre, showing an increase of 5.87 per cent.
Also, Sigmund and Ever also adjusted their depot prices to N920 from N868 per litre and N920 from N870 per litre, indicating an increase of 5.99 per cent and 5.75 per cent, respectively.
Downstream operators to respond --Petroleumprice.ng
Reacting to the development, Chief Executive Officer, Petroleumprice.ng, Olatide Jeremiah, said: "The crude oil market is currently unstable or volatile. The downstream sector and operators would continue to respond to it.
"More changes should be expected in the coming weeks as new developments unfold in the global space and domestically. In other words, depot owners would likely consider possible downward adjustment of depot prices."
Expect more instability - 11Plc
Similarly, in an interview with Energy Vanguard, Managing Director, 11Plc, Mr Tunji Oyebanji, said, "This crisis is a geopolitical one, and as such, the prices are expected to be unstable.
"For now, it is volatile and will continue to go up and down. No one can tell how it will go, but be very certain that a statement can trigger it upward or downward. However, this is a win for Nigeria's budget. It means more money to fund the budget."
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Conflict has no long-term benefit -- IPMAN
However, the National President of Independent Petroleum Marketers Association of Nigeria, IPMAN, Abubakar Garima, said: "Whenever crisis is mentioned in the oil and gas industry, it does not have any lasting positive impact on the nation's economy, other than foreign exchange generation. With adequate support, indigenous investors can attract much foreign exchange into the nation's economy. However, we hope that all parties come to a round table and resolve this crisis in the best interest of all stakeholders."
