Connect with us

News

Petrol Prices in Nigeria: Landing Cost Drops Amid Global Oil Fluctuations

Published

on

The landing cost of Premium Motor Spirit (PMS), commonly known as petrol, has fallen to N981 per litre, according to recent data from the Major Energies Marketers Association of Nigeria (MEMAN).

This marks a significant decrease from the previous cost of approximately N1,130 per litre as of September 25, 2024, primarily driven by a decline in global crude oil prices.

Global Crude Oil Prices Influence Petrol Costs

Recent fluctuations in crude oil prices have had a direct impact on the cost of refined petroleum products in Nigeria. Brent crude, the global benchmark, traded at $71.41 per barrel on Thursday, down from $73.46 the previous day. In August 2024, the average price was around $80.36 per barrel, but has since fluctuated between $70 and $75 per barrel due to lower oil demand in China and expectations of increased production from the Organisation of Petroleum Exporting Countries (OPEC).

Advertisement

Increase in Petrol Imports Amid Local Production

Despite the decrease in landing costs, petrol pump prices in Nigeria have seen an increase. Major oil marketers have begun importing petrol following recent deregulation in the downstream oil sector, with three major marketers confirming the arrival of vessels carrying approximately 141 million litres of PMS. This shift comes as the Dangote Petroleum Refinery ramps up local petrol production after decades of reliance on imports.

Regional Variations in Petrol Pricing

According to MEMAN, the average ex-depot price of petrol varies across Nigeria. In Lagos, it ranges between N865 and N1,200, while in Calabar, it is between N980 and N1,400, and in Port Harcourt, it falls between N1,200 and N1,400. Diesel prices have also seen changes, now averaging N1,089 per litre, with aviation fuel priced at N1,117.34.

Advertisement

Implications of Pricing Negotiations

The Nigerian National Petroleum Company (NNPC) has faced scrutiny over its pricing strategy, especially following the unveiling of locally-produced fuel by Dangote. The NNPC announced that it would sell petrol lifted from the Dangote refinery at prices exceeding N1,000 per litre in northern states, with varying prices across the country. Despite negotiations, pricing remains market-driven, as explained by NNPC’s Executive Vice President, Dapo Segun.

Future Outlook

With the impending commencement of naira crude sales on October 1, 2024, there is optimism among Nigerians that petrol prices may stabilize further. As the market continues to evolve, consumers are hopeful for a reduction in petrol costs, benefiting from both local production and imported supplies.

Advertisement

Overview of Nigeria’s Oil Sector

Nigeria is one of Africa’s largest oil producers and has a significant role in the global oil market. The country’s economy is heavily reliant on oil exports, which account for a large portion of government revenue and foreign exchange earnings. However, Nigeria has faced numerous challenges, including fluctuating global oil prices, inadequate refinery capacity, and currency instability.

Recent Developments in Petrol Pricing

1. **Landing Cost Reduction**: The recent drop in the landing cost of petrol to N981 per litre is a significant development, especially as it was previously over N1,130. This reduction is attributed to a decrease in global crude oil prices, which have fluctuated due to various factors, including demand changes and OPEC production decisions.

Advertisement

2. **Impact of Global Oil Prices**: The Brent crude oil price has been volatile, affecting local petrol prices directly. When global oil prices decrease, it typically leads to lower landing costs for imported fuel. Conversely, increases in prices can trigger higher consumer prices domestically.

3. **Deregulation and Imports**: The Nigerian government has recently deregulated the downstream oil sector, allowing private marketers to import petrol. This move aims to foster competition and stabilize supply. Major oil marketers have begun importing petrol, which is essential for meeting local demand, especially as local refineries ramp up production.

4. **Local Refinery Operations**: The Dangote Petroleum Refinery, one of the largest in Africa, has recently started producing petrol. This is a pivotal change for Nigeria, which has long relied on imported fuel. The refinery is expected to enhance local production capacity, reduce dependence on imports, and potentially lower prices.

Challenges Facing the Oil Sector

Advertisement

1. **Currency Fluctuations**: The Nigerian naira has faced depreciation against major currencies, impacting the cost of imported goods, including fuel. The exchange rate plays a crucial role in determining the landing costs of petrol and other petroleum products.

2. **Infrastructure Issues**: Despite having significant oil reserves, Nigeria’s refining capacity has been historically underutilized due to infrastructural challenges and maintenance issues. Investments in refining capacity and infrastructure are essential for boosting local production.

3. **Economic Diversification**: The heavy reliance on oil has made Nigeria vulnerable to price shocks in the global oil market. As a result, there are ongoing discussions about diversifying the economy to reduce dependence on oil and enhance resilience against market fluctuations.

4. **Regulatory Environment**: The shift towards deregulation is part of a broader strategy to improve efficiency in the oil sector. However, the transition comes with challenges, including ensuring that consumers benefit from competition and that prices remain stable.

Advertisement

Future Prospects

Looking ahead, the combination of local refinery production, increased imports, and ongoing regulatory changes could lead to a more stable petrol market in Nigeria. If the Dangote refinery operates at full capacity and other private refineries follow suit, there may be a significant reduction in import dependency.

Moreover, effective management of the oil sector, along with strategic investments in infrastructure and technology, could enhance productivity and efficiency. This would not only stabilize petrol prices but also contribute to overall economic growth.

In summary, while there are positive developments in the Nigerian oil sector, challenges remain. The government’s approach to deregulation, support for local production, and management of external factors will be crucial in shaping the future of petrol pricing and energy security in Nigeria. If you have more specific aspects you want to explore or questions about, feel free to ask!

Advertisement

Source: thecheernews.com

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

UK, Italy, Turkey, Qatar-bound cocaine, meth consignments intercepted in Lagos, Abuja+Photos

Published

on

. As NDLEA arrests masterminds at MMIA, Abuja hotel; foils bid to smuggle opioids into Lagos from Ghana

By Kayode Sanni-Arewa

Attempts by drug syndicates to export large consignments of cocaine, methamphetamine and opioids through the Murtala Muhammed International Airport, MMIA, Ikeja Lagos and the Nnamdi Azikiwe International Airport, NAIA, Abuja to the United Kingdom, Italy, Turkey and Qatar have been thwarted by operatives of the National Drug Law Enforcement Agency, NDLEA, who in series of intelligence led operations recovered the illicit drugs and arrested the masterminds.

A total of 13 parcels of cocaine weighing 4.40kg cocaine going to the United Kingdom via Frankfurt on a Lufthansa Airlines flight were intercepted by NDLEA officers at the export shed of the Lagos airport on 5th November 2024 while a businessman linked to the consignment, Ekeocha Anayo Nelson, was tracked and arrested on 8th November.

Advertisement

The bid by another businessman, Adegbite Solomon (aka Obama) to export 7,800 pills of tramadol, 180 tablets of rohypnol, and 60 bottles of codeine to Italy was also foiled at the departure hall of the Lagos airport on Monday 11th November when NDLEA operatives arrested him after recovering the opioids concealed in food and other items while attempting to board an Ethiopian Airlines flight to Italy. He claimed to have travelled to Europe through the Mediterranean Sea and earned a living as a street beggar before delving into logistics business.

Also related is the arrest of another businessman, Anoke Kingsley Roomy with 1,100 pills of tramadol 225mg hidden in his luggage while attempting to board his Ethiopian Airlines flight going to Istanbul, Turkey at the terminal 1 of the Lagos airport on Friday 15th November.

Following credible intelligence, NDLEA officers of the Directorate of Operations and General Investigation, DOGI, and their counterparts from the FCT Command of the Agency on Friday 15th November raided a hotel room at the Federal Housing Authority estate, Lugbe, Abuja, where they arrested two suspects: Omeh Uchenna Jude, 36, and Anene Valentine Chigozie, 34. Recovered from them was 1.8kg methamphetamine, which they were preparing to travel with to Qatar.

Another suspect, Akande Moruf Olasunkanmi, was arrested with 1.8kg methamphetamine by operatives of a Special Operations Unit in NDLEA at his 9 Durojaiye street, Lawanson area of Surulere, Lagos home after weeks of intelligence and surveillance.

Advertisement

In another intelligence led operation, officers of an NDLEA task force on Saturday 16th November foiled the attempt by a trans-border trafficker, Emmanuel Okechukwu Okeke to smuggle 50,000 pills of tramadol 225mg from Ghana into Lagos.

The pills were concealed in the body compartments of a Toyota Hummer Bus belonging to GUO Transport Company, driven by the suspect.

The vehicle was intercepted at Ijanikin area of the Lagos-Badagry expressway while coming from Ghana.
In Edo state, not less than 997kg cannabis was recovered during raids in parts of the state.

While 680kg cannabis and a Sienna bus marked FST-320 AE were seized at a bush path to Oghada forest in Oghada, Orhionmwan LGA, 180.5kg of same substance was recovered from a suspect, Cecilia Ibe, 31, at Ofosu forest, Ovia South West LGA and 136.5kg evacuated from a building in Otuo community, Owan East LGA on Thursday 14th November.

Advertisement

A suspect, Ifejimagha Chinonso was on Wednesday 13th November nabbed with 88.3kg cannabis by NDLEA operatives on patrol along the Lagos-Ibadan expressway while personnel of Kano Command of the Agency on Friday 15th November arrested Ahmed Goni, 30, at Gadar Tamburawa, Kano- Zaria road where they recovered from him 65,730 capsules of tramadol.
In Kwara state, NDLEA operatives arrested a suspect Adio Sulaiman with 120.8kg cannabis and some litres of codeine at Gaa Odota in Ilorin West LGA, while Kelechi Obichere, 42, was nabbed with 75kg cannabis at Eziobodo, Owerri West LGA, Imo state on Thursday 14th November. A total of 563.74 kilograms of same psychoactive substance were recovered from a 60-year-old suspect Anthony Anakabi, following his arrest at Iyalode, Iyana church area of Ibadan, the Oyo state capital.

With the same vigour, Commands and formations of the Agency across the country continued their War Against Drug Abuse, WADA, sensitization activities to schools, worship centres, work places and communities among others in the past week.

These include: WADA enlightenment lecture to students and staff of Government Day Secondary School, Bazza, Adamawa; Community Secondary School, Ogan-Ama, Rivers state; NKST Secondary School, Adikpo, Benue state; Government Secondary School, Tambuwal, Sokoto state; Government Girls Secondary School, Kunchi, Kano; Ebele Chu Group of Schools, Nkpor Onitsha, Anambra; and Army Cantonment Senior Boys High School, Ojo, Lagos state, among others.
While commending the officers and men of MMIA, DOGI, DI, Oyo, Lagos, Imo, Kwara, Kano, and Edo Commands of the Agency for the arrests and seizures, Chairman/Chief Executive Officer of NDLEA, Brig. Gen. Mohamed Buba Marwa (Rtd) stated that their operational successes and those of their compatriots across the country especially their balanced approach to drug supply reduction and drug demand reduction efforts are well appreciated


.

Advertisement
Continue Reading

News

Brotherhood crisis turns violent as worshippers reject Olumba’s successor

Published

on

The prolonged succession crisis in a Nigerian Christian religious sect, the Brotherhood of the Cross and Star, has festered on since its founder, Olumba Obu, passed away.

The crisis turned violent recently as angry worshippers in a particular branch in Uyo, Akwa Ibom State, became riotous, destroying the portrait of Olumba’s first son, Rowland, who leads a faction of the sect.

Olumba’s daughter, Ibum, leads another faction.

A video, which is being circulated on WhatsApp groups and Facebook, captured a man in a white cassock yanking off Rowland’s portrait from the wall and smashing it on the floor amid cheers from worshippers.

Advertisement

Rowland’s portrait was hung near Olumba’s, but the angry worshippers did not attack the latter.

“Bring it down!” a woman’s voice could be heard shouting in the background of the video as the man in a white cassock smashed the glass frame on the ground.

“This is who we are worshipping,” a man’s voice could be heard shouting repeatedly as the camera panned and then focused on Olumba’s portrait on the wall.

It is not clear when the incident happened.

Advertisement

Amah Williams, the sect’s spokesperson, said the incident happened in Uyo at the sect’s Nsikak Edouk Avenue branch.

Rowland and Ibum, with hundreds of their followers, are claiming the leadership of the 68-year-old sect after their father’s passing, causing a disastrous split in a once united and strong organisation headquartered in the Biakpan community in Cross River State, Nigeria’s South-south.

‘They are rebels’

Mr Williams, the sect’s spokesperson, told reporters on Saturday in Uyo that those responsible for the incident belong to a breakaway faction called Brotherhood of the Cross and Star New Kingdom Ministry.

Advertisement

He described them as rebels who do not want to accept Rowland’s leadership – he did not call Rowland by name as Olumba’s successor is revered among worshippers as “King of Kings and Lord of Lords, His Holiness Olumba Olumba Obu”.

“They are rebels. They rebelled; they rejected the rulership of the Kingdom of Christ,” Mr Williams told reporters.

“The holy image of our father is what we hold sacred,” he said, apparently referring to the destruction of Rowland’s portrait.

A reporter asked the spokesperson what place Jesus Christ occupies in the Brother of the Cross and Star.

Advertisement

“That same (Jesus) Christ is the one that came with the new name Olumba Olumba Obu,” responded.

“If Olumba were to be a white man, black men would have gone to worship on his feet.”

The over 1 million global members of the Brotherhood of the Cross and Star do not see themselves as a church but as the new Kingdom of God on Earth. They have also refused to admit that their founder had passed away as the sect has yet to announce his passing or publicly conduct his burial.

Advertisement
Continue Reading

News

Tinubu’s reforms struggling to deliver meaningful results – IMF

Published

on

Eighteen months after the implementation of Nigeria’s ongoing economic reforms, the International Monetary Fund (IMF) has observed that the fiscal policies introduced by the President Bola Tinubu administration are struggling to deliver meaningful results.

Catherine Patillo, IMF Deputy Director, while presenting a report at the Lagos Business School (LBS) on Friday, reported a mixed performance of economic reforms across Sub-Saharan Africa, with notable successes in countries such as Côte d’Ivoire, Ghana and Zambia.

Nigeria was conspicuously absent from the list of success stories in the region.

The report stated that sub-Saharan Africa’s average economic growth rate is projected to remain at 3.6 per cent for 2024. It noted that Nigeria’s growth rate, pegged at 3.19 per cent, falls below this average.

Advertisement

Patillo said that while macroeconomic imbalances have reduced in several countries, Nigeria has yet to show such progress.

She stated that more than two-thirds of countries have undertaken fiscal consolidation, stressing that while the median primary balance is expected to narrow by 0.7 percentage points alone in 2024, there are notable improvements in Cote d’Ivoire, Ghana, and Zambia, among others.

The report stated, “In contrast, Nigeria’s inflation rate, which slowed briefly in July and August, resumed its upward trend in September, rising further in October.

“At 33.8 per cent, it significantly exceeds the 21 per cent target set for 2024, with analysts predicting further increases in November and December.”

Advertisement

The report also observed Nigeria’s struggles with exchange rate stability, highlighting it as one of the worst-performing nations in that regard.

According to the report, other countries in the region are experiencing reduced foreign exchange pressures but Nigeria’s local currency depreciation and instability remain a concern.

On debt servicing, the report said Nigeria ranked among countries suffering the heaviest fiscal burden.

The IMF noted that rising debt service obligations are consuming substantial portions of revenue, limiting resources available for development.

Advertisement

It stated that in Angola, Ghana, Nigeria, and Zambia, the increase in interest payments alone absorbed a massive 15 per cent of total revenue.

The IMF grouped Nigeria among resource-intensive countries struggling with social and political challenges that hinder reform implementation.

Political unrest, public dissatisfaction, and tight financing conditions were identified as major impediments.

The report noted that resource-intensive countries continue to grow at about half the rate of the rest of the region, with oil exporters struggling the most and further noted that adjustment fatigue, public resistance, and weak communication strategies are undermining the impact of reforms in Nigeria.

Advertisement

The IMF recommended rethinking reform strategies, urging countries like Nigeria to adopt measures that mobilise public support for deep structural changes.

It pointed out the need for greater attention to communication and engagement strategies, reform design, compensatory measures, and rebuilding trust in public institutions.

Continue Reading

Trending

Copyright © 2024 Naija Blitz News