Petrol price hike and fuel scarcity update for November 10th, 2024
As Nigerians continue to express frustration over the recent fuel price hike by the Nigerian National Petroleum Company (NNPC) Limited, Gistreel provides the latest updates on petrol scarcity, fuel price increases, and reactions from both the government and citizens.
Economist and CEO of Financial Derivatives Company Limited, Mr. Bismarck Rewane, has projected that petrol prices in Nigeria could soon reach ₦1,200 per litre.
In his November 2024 economic outlook, Rewane also anticipated that Brent crude oil could drop to $70 per barrel by December, with inflation potentially rising to 34%. He forecasted that the Naira could appreciate to ₦1,550/$ by January 2025.
According to ThisDay, Rewane shared these insights during the November session of the Lagos Business School’s Breakfast Session titled ‘Democracy on Trial! Trump – Going Back to the Future.’
He highlighted that there is no economic rationale for the Naira to trade at less than 30% of its fair value within the next 12 months.
“According to the Economist Intelligence Unit, crude oil prices next year will average $74 per barrel, which could push petrol prices to N1,200 per litre,” he stated.
The Dangote Refinery and Petrochemical is poised to commence fuel exports to South Africa, Angola, and Namibia.
According to a source who spoke with The PUNCH on Friday, the management of the 650,000-barrel-per-day capacity refinery is in advanced discussions with these nations regarding fuel supply agreements.
Reports indicate that four additional African countries – Niger Republic, Chad, Burkina Faso, and the Central African Republic – have also begun negotiations with the refinery.
Saturday PUNCH was informed that more countries are expected to express interest in securing fuel supplies from the $20 billion Lekki-based refinery in the coming months.
Ghana has already signaled interest in purchasing petrol, with Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, noting that the deal with Dangote would put an end to the country’s monthly $400 million fuel imports from Europe.
The lawmaker representing Niger East Senatorial District in the National Assembly, Sani Musa, has heaped praises on President Bola Tinubu over his decision to implement the fuel subsidy removal policy.
Musa in an interview with Channels TV on Friday, submitted that the fuel subsidy removal by President Tinubu is the best thing that has happened to Nigeria.
According to previous report by Gistreel, the President had, on May 29, 2023, announced the total removal of fuel subsidy, leading to a sharp increase in the price of petrol, a rise in inflation as well as rise in the price of other commodities.
However, Senator Musa during his interview, said President Tinubu took the decision in the best interest of the country.
“We want to be sure that what we are doing is not going to reflect negatively on Nigerians,” he said.
