With the assurance from the federal government that the naira-for-crude deal with local refiners will continue and declining global oil prices, analysts say, the development may likely reduce the local petrol price.
According to them, the much needed relief would come the way of the despondent consumers, who are burdened by reduction in purchasing power as well as charges and levies from the thriving banking sector.
The global oil prices are fast declining even as United States President Donald Trump continues with his aggressive tariffs imposition with China reaching 135 percent and derermination of the OPEC+ to increase supplies into the international market from next month.
ALSO READ:Oil Retreats As US-China Trade War Escalates
Although the reduction in crude prices would mean declining revenue to the National purse, the analysts say the consumers need any palliatives now inview of the rising hardship in Nigeria.
However, oil prices retreated on Thursday as President Trump ramped up a trade war with China, even as he announced a 90-day pause on tariffs aimed at other countries.
Consequently, brent futures fell 39 cents, or 0.6%, to $65.09 a barrel by 0630 GMT, while U.S. West Texas Intermediate crude futures dropped 29 cents, or 0.5%, to $62.06.
The benchmark crude contracts had settled 4% higher on Wednesday after dropping as much as 7% during the session.
Trump, however, raised the tariff rate for China to 125% effective immediately, from the previously announced 104% tariff that had kicked off earlier on Wednesday.
The higher U.S. tariffs on China leave plenty of uncertainty in the markets, ING commodities strategists said in a research note on Thursday.
