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Nigerian oil marketers project N600/litre for Dangote petrol

Published

3 months ago

August 13, 2024

In Nigeria, independent petroleum merchants are expecting that when Premium Motor Spirit—also known as petrol—is eventually allowed into the market, the Dangote Petroleum Refinery will sell it for N600 or N650 per litre.

According to dealers operating under the Independent Petroleum Marketers Association of Nigeria, the Dangote refinery will cause the price of petrol to plummet, just like it did for diesel.

In an interview on Monday, IPMAN National Vice President Hammed Fashola informed our correspondent that if the $20 billion refinery received the necessary funding, fuel prices would decrease, particularly concerning the availability of crude oil.

The Nigerian National Petroleum Company Limited, the exclusive importer of PMS, has been supplying it to marketers for N570 per litre, but the majority of IPMAN members purchase it from private depot owners for N700 and more, he claims.

“We are marketers, we go for the best. We have been buying from the NNPC, but if the opportunity of Dangote comes and the price is favourable, we will grab it. It depends on the price.

“The official price from the NNPC is around N570/litre, but the third parties, the private depots sell PMS to most of our members at N700 and above.

“Plus or minus, we hope Dangote can sell between N600 and N650/litre. N600 is still okay. However, it depends on the cost of the production from Dangote’s end. We have to be factual and sincere to ourselves. The NNPC we are talking about has an element of subsidy or what they now call under-recovery. I think something is hidden there,” Fashola stated.

“We know Dangote refinery crashed the price of diesel,” Fashola recalled when discussing the cost of diesel. Diesel cost about N1,600 when the refinery first began to produce it, and it now only costs N1,000.

“Now you can buy diesel at N1,150 or N1,200/litre. We expect the same with PMS, but this crude crisis is a major challenge. Even if Dangote is buying crude in naira, if it is at the international market price, it will make no difference. We have to be realistic.”

The head of IPMAN stated that the organisation has discussed potential commercial partnerships with some refinery executives and that the marketers are awaiting Dangote’s arrival.

“The discussion continues. We are on course. I think very soon we will conclude the discussion. We are waiting,” he stated.

Last month, Alhaji Aliko Dangote, President of the Dangote Group, predicted that the refinery would start producing petrol between 10 and August 12, 2024. For various reasons, the refinery with a capacity of 650,000 barrels per day was unable to start producing petrol on Monday.

The continued difficulty in the supply of crude oil may be a hindrance to the refinery, according to findings.

Related Topics:Dangote Featured Nigeria PETROL

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IMF mission concludes 4th loan program assessment in Egypt

Published

2 days ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

4 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.