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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
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Just in :INEC announces date for Anambra governorship election
By Kayode Sanni-Arewa
The Independent National Electoral Commission (INEC) has fixed the date for the Anambra governorship election.
Addressing representatives of political parties at the INEC headquarters in Abuja on Thursday, October 17, INEC national chairman, Prof Mahmood Yakubu said the election will be held on Saturday 8th November 2025.
Hear him: “As you are aware, the last governorship election in Anambra State was held on 6th November 2021. By the effluxion of time, the governorship election is due next year.
In compliance with the mandatory requirement of 360 days, the formal notice for the election will be published on 13th November 2024. Party primaries will be held from 20th March 2025 to 10th April 2025.
“The candidate nomination portal will open at 9.00 am on 18th April 2025 and close at 6.00 pm on 12th May 2025. The final list of candidates will be published on 9th June 2025.
“Campaign in public by political parties will commence on 11th June 2025 and end at midnight of Thursday 6th November 2025. Voting will take place in all the 5,720 Polling Units across the State on Saturday 8th November 2025.
In compliance with the mandatory requirement of 360 days, the formal notice for the election will be published on 13th November 2024. Party primaries will be held from 20th March 2025 to 10th April 2025.
“The candidate nomination portal will open at 9.00 am on 18th April 2025 and close at 6.00 pm on 12th May 2025. The final list of candidates will be published on 9th June 2025.
“Campaign in public by political parties will commence on 11th June 2025 and end at midnight of Thursday 6th November 2025. Voting will take place in all the 5,720 Polling Units across the State on Saturday 8th November 2025.
The candidate nomination portal will open at 9.00 am on 18th April 2025 and close at 6.00 pm on 12th May 2025. The final list of candidates will be published on 9th June 2025.
“Campaign in public by political parties will commence on 11th June 2025 and end at midnight of Thursday 6th November 2025. Voting will take place in all the 5,720 Polling Units across the State on Saturday 8th November 2025.
“In the coming weeks, the Commission will provide details of other electoral activities, including the registration of new voters, transfer of voters and the replacement of lost or damaged PVCs.
“The detailed Timetable and Schedule of Activities for the 2025 Anambra State Governorship election will be uploaded to our website and social media platforms before the end of this meeting.”
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Despite heavy hunger, World Bank Tells Nigerians Not To Oppose, Reverse Tinubu’s Economic Reforms
By Kayode Sanni-Arewa
Despite hunger, World Bank has urged Nigerians to support the ongoing economic reforms, warning that opposing or reversing them could have serious negative consequences for the country.
Speaking at the launch of the Nigeria Development Update (NDU) report in Abuja, the World Bank Country Director for Nigeria, Dr. Ndiame Diop, emphasized that while the reforms may be challenging, they are crucial for the nation’s long-term stability.
Dr. Diop cautioned that rolling back these reforms would be detrimental, saying, “Reversing the reforms would spell doom for Nigeria.”
In the same vein, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, reiterated the importance of staying committed to the reforms. He stated, “Any effort that is not sustained will be a waste. Together with the Governor of the Central Bank of Nigeria and the Minister of Budget and National Planning, we’ve been discussing how to stay on course.”
Edun further explained that the government’s focus is on reducing inflation while ensuring investments flow into critical sectors such as industry, where jobs can be created. “We are prioritizing market pricing and sat down with labor unions to explain why we cannot afford to let this opportunity slip.”
On the removal of subsidies, Edun noted, “Every day without subsidies means more funds available for education, healthcare, and other essential expenditures.”
Also speaking, Central Bank Governor Mr. Olayemi Cardoso highlighted the importance of promoting exports in light of the exchange rate adjustments. “The moderation in the FX rate should make our goods more competitive for export and discourage the importation of unnecessary goods,” he said
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