A Financial Economist, Dumebi Oluwole, has explained why the recent drop in global prices of Brent from over $100 per barrel pre-war level to about $72 has yet to reflect at fuel pumps across the country. In Nigeria, the development has seen even the Federal Government calling for a reduction in prices to match global changes.
According to Oluwole, global prices of Premium Motor Spirit (PMS) or petrol are just beginning to drop gradually, and may not be as fast as expected. “It is very important we contextualise what is happening and why it is happening the day it is right now. “Speaking to petrol, the biggest factor here is uncertainty.
“The MoU between the US and Iran hasn’t necessarily equated to an agreement. And just yesterday, there were still strikes from both parties within the Strait of Hormuz,” she said.