Petrol cost may plummet further as crude prices decline

The price of petrol may further fall if the crude oil prices continue to slip.

Oil prices declined about two per cent to a 12-week low this week amid speculations that OPEC+ will proceed with a planned oil output increase in April.

Brent futures fell $1.19, or 1.6 per cent, to settle at $71.62 a barrel, while the United States West Texas Intermediate crude fell $1.39, or two per cent, to settle at $68.37.

Reuters reports that those were the lowest closes for Brent since December 6 and WTI since December 9.

It was reported that the Organisation of the Petroleum Exporting Countries and allies like Russia, known as OPEC+, decided to proceed with a planned April oil output increase.

Players in the Nigerian downstream oil sector have said the crude oil price and the exchange rate are the major determiners of the costs of refined petroleum products.

Last week, the Dangote refinery reduced its ex-depot PMS price from N890 per litre to N825.