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Nigerian oil marketers say fresh petrol price increase looms as crude reaches $94

Published

1 year ago

September 18, 2023

Following a recent rise in the cost of crude oil, and further depreciation of the Nigerian currency, Naira, there are concerns about another hike in the price of Premium Motor Spirit, popularly called petrol.

On Sunday, oil marketers asked that the government should gradually boost the amount secretly paid as a petrol subsidy due to the rapid spike in crude oil price to about $94 per barrel, and Nigeria’s foreign exchange crisis. According to the downstream oil dealers, around 80% of the price of PMS was determined by the price of crude oil and the dollar’s value at the time.

The price of Brent crude, the world’s standard for oil, increased to $94 a barrel on Sunday, the highest level since 2023. Oil started the year at around $82/barrel, fell below $70/barrel in June, but has recently traded above $92/barrel.

The dealers stressed that if the government maintained the price of petrol at N617 per litre, then the subsidy on PMS had been covertly returned. They explained that with the most recent increase in the price of crude oil, the cost of petrol was expected to climb.

The marketers noted that in July when the price of fuel was increased to N617 per litre, crude oil traded at roughly $82 per barrel, while the exchange rate at the parallel market was not as high as N950 per dollar.

The previous administration of Muhammadu Buhari postponed the removal of the subsidy but made budgetary preparations for the subsidy to terminate by June 2023. However, President Tinubu stated, “Subsidy is gone,” during his inaugural speech on May 29.

Last month, Tinubu, during a nationwide address, revealed that the government had saved ₦1 trillion in the two months since the removal of the petrol subsidy. He added that the money, which would have been squandered by those he called “smugglers and fraudsters”, would now be channelled into intervention programmes targeting families nationwide.

Since the removal of fuel subsidies, there has been back and forth between the government and organized labour on the best approach to manage the fallouts of the policy.

Related Topics:Featured Fuel subsidy Petrol Price

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Moroccan annual inflation rises to 0.8% in November

Published

17 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”