Petrol prices may reduce in the coming days as global crude oil prices continue to decline amid ongoing diplomatic talks between the United States and Iran aimed at easing tensions in the Middle East.
Oil prices reportedly dropped from about $111 per barrel last week to around $97 on Monday morning, raising expectations of possible reductions in fuel prices across several countries, including Nigeria.
The sharp decline followed growing optimism that the US and Iran could reach an agreement that may lead to the reopening of the Strait of Hormuz, a major global oil shipping route.
Earlier projections had suggested that crude prices could fall significantly if peace negotiations between both countries progressed and the strategic waterway was reopened for normal operations.
By Sunday, Brent crude was trading between $103 and $105 per barrel amid indications that diplomatic efforts were gaining momentum. However, prices declined further to about $97.48 on Monday, sparking fresh speculation that local fuel prices may soon drop if the trend continues.
Crude oil prices had surged above $100 per barrel after tensions escalated between the United States and Iran earlier this year, with prices climbing beyond $115 at some stages of the conflict.
The increase triggered higher fuel costs globally, including in Nigeria, where petrol prices reportedly rose from about ₦830 per litre to nearly ₦1,300 per litre. Diesel and aviation fuel prices also climbed sharply during the period, prompting concerns among airline operators and transport businesses.
With crude prices now falling, attention has shifted to the Dangote Petroleum Refinery amid expectations that the refinery could consider reducing the pump price of petrol if the downward trend continues.
There were also reports suggesting that the United States and Iran had reached preliminary understandings aimed at de-escalating the conflict and reopening the Strait of Hormuz.
Donald Trump had earlier stated that reopening the strategic route formed part of ongoing negotiations involving the US, Iran and several Middle Eastern nations.
According to him, discussions were held with leaders of countries including Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Türkiye, Egypt, Jordan, Bahrain and Israel as efforts intensified to secure a broader agreement.
Trump also disclosed that while substantial progress had been made, final details of the agreement were still being negotiated.
He noted that the Strait of Hormuz, through which roughly 20 per cent of global oil supply passes, would eventually be reopened under the proposed arrangement.
Meanwhile, Iranian authorities confirmed on Monday that negotiations with the US were progressing, although they maintained that a final agreement had not yet been reached.
Iran’s Foreign Ministry spokesman, Esmail Baqai, said both sides had resolved many of the major issues under discussion but stressed that no final deal had been concluded.
Reports indicated that the proposed understanding between both countries may include a temporary ceasefire extension, the reopening of the Strait of Hormuz and a framework for continued talks surrounding Iran’s nuclear programme.