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More trouble for Nigerians as fuel price hike imminent over rise in FX, oil price, Middle East
By Mario Deepromoter
There are strong signals that an increase in the price of Premium Motor Spirit (PMS), also known as petrol is imminent.
The anticipated hike, players note, is primarily driven by a rise in the exchange rate of the dollar to the naira, coupled with escalation in the global price of crude oil.
As these economic factors converge, consumers in Nigeria may soon face higher fuel costs, reflecting the interconnected nature of international markets and local economies.
The naira showed further signs of weakness last week, closing the market at N1,700 from N1,600 to $1, a development that is set to affect retail fuel prices.
Brent, the global benchmark for crude, hit $78.04 per barrel on Sunday, up from $74.05 per barrel on September 23, 2024.
More so, there are concerns that a widening regional conflict in the Middle East could disrupt global crude flows. Market fears are rising over the possibility that Israel might target Iranian oil infrastructure, which could provoke retaliation.
President, Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Mr. Billy Gilly-Harry, told Daily Sun that the hostilities in the Middle East will definitely impact petrol prices in the coming days.
He explained that, at the moment, vessels are changing their routes as a result of the crisis in the Middle East, thereby causing an increase in shipping costs, which will subsequently impact prices.
“As an association, we have taken cognizance of the impact of this crisis on fuel costs, and I can tell you categorically that this will lead to an upward review of fuel prices. Certainly, the landing cost of fuel will go up. But what I cannot say is what that cost will be,” he said.
Chief Executive Officer of Pinnacle Oil and Gas Limited, Mr. Robert Dickerman, said the global market price for any oil commodity is dollar-based and must be converted to naira at the naira/USD exchange rate.
He added that the large majority of price increases we have seen in the past year are not because of government policies, price gouging, or product hoarding, nor are they due to an increase in the price of crude oil, but are due to the fall in the value of the naira.
“Every drop in naira value raises the cost of anything imported or market-priced, whether it is gasoline, manufactured goods, or food,” he said.
Dickerman said Nigeria must address the root of the problem, which is how to restore global confidence in Nigeria’s economy and currency, create foreign investment in jobs and local production, increase tax revenue, and achieve fiscal prudence, saying that is the only way to lower petroleum product prices in Nigeria.
The impending fuel price hike, according to industry observers, may have forced the Nigerian National Petroleum Company (NNPC) Ltd to shut its petrol payment portal against fuel marketers.
Spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Chinedu Ukadike, said that marketers have more than 2,000 pending tickets for the purchasing of 45,000 litres of petrol, warning that the situation may lead to another round of fuel scarcity nationwide.
“I can’t confirm the price now because the portal is still shut down.
“We have more than 2,000 tickets for 45,000 litres (of petrol). That is 45,000 multiplied by 2,000; you can now know the number of million litres it will be. This is just an estimate; you know I don’t work with NNPCL, and I don’t know what is on their system.”
He added that a 45,000-litre truckload of PMS is around N39.5 million, making N79 billion when multiplied by 2,000.
Some of the marketers at the Apapa depot who spoke in confidence expressed concerns that the development could hamper the fragile fuel distribution chain, leading to shortages in the weeks ahead.
They said any disruption in the fuel supply chain is a potential threat for a fuel crisis and therefore called on all relevant stakeholders to address whatever challenges that may want to rear their ugly heads.
But in a separate reaction, the National Vice President of IPMAN, Mr. Hammed Fashola, in a telephone interview with Daily Sun on Friday, said there is no cause for worry, assuring that as long as the tickets which are already in the custody of NNPC Ltd are being serviced, there would be no disruption.
He maintained that the portal closure against fresh payment by NNPC Ltd was taken in the best interest of the market, saying there was no point in holding on to the business funds of marketers when there was a backlog to clear.
“It is better to allow the funds to be in the hands of marketers to enable them to use it for other things, rather than holding on to it when there won’t be immediate supply.”
In his reaction, the spokesperson of NNPC Ltd, Mr. Olufemi Soneye, who confirmed the shutdown of the portal, assured stakeholders that it would be opened as soon as they clear the backlog.
He said that the portal closure was intended to prevent the company from holding marketers’ funds for an extended period.
“We have a significant backlog to address. The closure is intended to prevent us from holding marketers’ funds for an extended period.
Credit: Daily Sun
News
Army Council elevates 35 Brigadier Generals, 73 Colonels
The Army Council on Thursday approved the promotion of 35 Brigadier Generals and 73 colonels.
A statement by the Director Army Public Relations, Major General Onyema Nwachukwu on Friday said the Brigadier Generals were promoted to the rank of Major General, while the colonels were promoted to Brigadier General accordingly.
Those promoted to the rank of Major General include, Brig Gen A Garba Acting Provost Marshal Nigerian Army, Brig Gen UM Alkali Deputy Chief of Administration, Directorate of Veteran Affairs (Army), Brig Gen AGL Haruna, Acting General Officer Commanding 7 Division and Commander Sector 1 North East Operation HADIN KAI, Brig Gen IA Ajose Acting General Officer Commanding 8 Division and Commander Sector 2 North West Operation FANSAN YAMA, Brig General NB Ebulue Headquarters Nigerian Army Heritage and Future Centre, Brig Gen LG Lepdung Commander Operation WHIRL STROKE, Brig Gen OA Awolo Director Military Training Nigerian Defence Academy, Brig Gen UG Ogeleka Commander Nigerian Army Space Command, Brig Gen OA Fadairo Commander 12 Brigade, Brig Gen OD Williams Commander 22 Brigade , Brig Gen JR Lar Commander 32 Brigade, Brig Gen AG Mahmuda Commandant Warrant Officer Academy, Brig Gen VD Beryo Commander Nigerian Army Special Forces School, Brig Gen AOD Okoro Director Army Headquarters Department of Special Services and Programmes, Brig Gen SO Adejimi Director Movement Army Headquarters Department of Army Logistics, Brig Gen TT Sidick Director of Finance Nigerian Defence Academy, Brig Gen MCE Ejike Commander Sector 2 Joint Task Force North East Operation HADIN KAI, Brig Gen MF Babayo Commander Sector 3 North East Joint Task Force Operation HADIN KAI, Brig Gen H Yanet Commander 51 Signal Brigade and Brig Gen MK Gara Army Headquarters Department of Training.
Also promoted to the rank of Major General are Brig Gen BP Koughna Deputy Chief of Military Affairs, Army Headquarters Department of Civil Military Affairs, Brig Gen I Otu Nigerian Army Heritage and Future Centre, Brig Gen AO Adegbite Headquarters Nigerian Army Corps of Supply and Transport, Brig Gen IE Ekpeyong Headquarters Nigerian Army Corps of Engineers, Brig Gen AA Idris Army Headquarters Department of Army Standards and Evaluation, Brig Gen SA Gumel Nigerian Army Resource Centre Strategic Management and Policy Studies, Brig Gen MT Jinadu Commander 82 Division Ordnance Services, Brig Gen SA Jimoh Deputy Director Tender Board Department of Procurement, and Brig Gen UT Opuene Deputy Director Policy and Plans Defence Intelligence Agency, among others.
Officers promoted from the rank of Colonel to Brigadier General are Col SM Iliya Commander 43 Engineers Brigade, Col O Igwe Commander 78 Supply and Transport, Col NE Udofia Headquarters Nigerian Army Electrical Mechanical Engineers, Col UR Okoroji Commander 404 Engineers Brigade, Col GS Oyinwola Army Headquarters Department of Military Secretary, Col S Ahmadu Defence Intelligence Agency, Col CI Nwonyi Commander 81 Division Provost Group, Col AS Aliyu Commander 1 Division Military Intelligence, Col T Garba Commander 77 Supply and Transport Brigade, Col K Imam Commander Army Headquarters Garrison Ordinance Services, Col NS Onuchukwu Chief Medical Director 44 Nigerian Army Reference Hospital, Col A Musa Commander 108 Division Equipment Support, Col DM Baba Office of the National Security Adviser, Col OA Obochi Defence Headquarters, Col PAJ Ebuk Commander 1 Division Supply and Transport, Col IP Omoke Office of the COAS Directorate of Procurement and Col P Elayo Headquarers Department of Space Administration.
Others elevated to the rank of Brigadier General are Col NI Abdullahi Armed Forces Command and Staff College, Col JC Mbanefo Army War College Nigeria, Col IO Amah Department of Operations Defence Headquarters, Col M Jimoh Defence Headquarters Garrison, Col TA Ayoola Army Headquarters Department of Army Operations, Col SA Jimoh Office of the Chief of Army Staff Department of Procurement, Col OC Ameni 103 Division Equipment Support, Col OU Okwuosa 2 Division Medical Hospital and Services, Col AO Odubiyi Armed Forces Command and Staff College, and Col NE Udofia Headquarters Nigerian Army Electrical and Mechanical Engineers, among others.
The Chief of Army Staff, Lieutenant General Olufemi Oluyede, while congratulating the newly promoted senior officers and their families, also charged them to redouble their efforts to justify their elevation and the confidence reposed in them.
He further tasked the newly promoted officers to lead their subordinates by example and evolve “out of the box” ideas and innovations to speedily tackle contemporary security challenges bedeviling the nation. He added that they must remain committed to their oath of allegiance to defend the nation at all times and maintain unalloyed loyalty to the constitution of the Federal Republic of Nigeria.
News
SAD! Ex-Boxing World Title Holder Thiery Jacob dies at 59
French former boxing world title holder Thierry Jacob has died at the age of 59, the mayor of his home city Calais announced on Friday.
Jacob took the WBC super bantamweight title in 1992, defeating Mexico’s Daniel Zaragoza in front of his local fans in Calais.
“We begin this day with sad news. Thierry Jacob died overnight, so young,” Natacha Bouchart, mayor of the northern port city, announced on Facebook.
Jacob turned professional in 1984, retiring a decade later with a 39-6 record, losing his WBC title at his first defence against American Tracy Harris Patterson in New York.
One of his sons, Romain Jacob, followed him into the ring, claiming the European super featherweight belt in 2014.
AFP
News
PDP cancels Gov’s birthday Party over oyo stampede
The South East chapter of the People’s Democratic Party (PDP) has canceled a birthday celebration planned for Oyo State Governor, Chief Abiodun Makinde, following the tragic deaths of over 30 children in a stampede at a funfair in Ibadan.
The event, organized under the Ali and Onyinyechi Foundation by the PDP National Vice Chairman (South East), Chief Ali Odefa, was scheduled to take place at Re-Meritona Hotel, Abakaliki, Ebonyi State.
Announcing the cancellation, the chairman of the occasion, Senator Sam Egwu, explained that the decision was made to honor the deceased and sympathize with their families.
Egwu stated: “My friend, Governor Makinde, had prepared to be here with us today. In fact, he sent an advance team two days ago. However, given the tragic incident in Ibadan, it is inappropriate for a state in mourning to have its governor celebrating a birthday.
“Some families, due to this incident, no longer know the meaning of Christmas. They are grieving, and it would be wrong for us to be rejoicing while they mourn. This is a painful but necessary decision.”
Egwu assured attendees that the event would be rescheduled, and a new date would be communicated.
Chief Ali Odefa, the event’s chief organizer, expressed deep sorrow over the tragedy in Ibadan and the subsequent cancellation of the celebration. He noted that the occasion was also meant to launch a book about Governor Makinde, whom he described as a friend and leader.
“This incident hit close to home for me, as the location where it occurred is just seven minutes away from my house in Ibadan,” Odefa said. He directed that all posters and billboards for the event be taken down.
Representing Governor Makinde, Prof. Emmanuel Echiegu conveyed the governor’s condolences to the families of the deceased and the people of Oyo State. He also commended Chief Odefa for choosing Ebonyi State for the celebration and encouraged him to reschedule the event at a later date.
The tragic stampede has cast a shadow over the festive season in Oyo State, prompting mourning and solidarity from across the nation.
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