November 10th, 2024: Latest update on petrol price increase and fuel scarcity
As Nigerians face frustration over the recent fuel price hike by the Nigerian National Petroleum Company (NNPC) Limited, Famzigist shares the latest on the fuel scarcity, rising petrol prices, and the government and public reactions.
Economist and CEO of Financial Derivatives Company Limited, Mr. Bismarck Rewane, has predicted that petrol prices in Nigeria might soon reach ₦1,200 per liter.
In his November 2024 economic report, Rewane also anticipated that Brent crude oil prices could fall to $70 per barrel by December, with inflation potentially reaching 34%. He suggested that the Naira might strengthen to ₦1,550 per dollar by January 2025.
According to ThisDay, Rewane discussed these projections at the Lagos Business School’s November Breakfast Session, titled ‘Democracy on Trial! Trump – Going Back to the Future.’ He noted that the Naira should not trade at less than 30% of its fair value within the next year.
“The Economist Intelligence Unit projects that crude oil prices will average $74 per barrel next year, which may drive petrol prices up to N1,200 per liter,” he explained.
Meanwhile, the Dangote Refinery and Petrochemical facility is preparing to export fuel to South Africa, Angola, and Namibia. Sources told The PUNCH that the refinery, which has a capacity of 650,000 barrels per day, is in advanced talks with these countries to supply fuel.
Additional reports indicate that four more African countries – Niger Republic, Chad, Burkina Faso, and the Central African Republic – are also in discussions with the refinery for fuel supplies. Saturday PUNCH reports that more countries may soon show interest in buying fuel from the $20 billion Lekki-based refinery. Ghana, for example, has already expressed interest, with Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, saying that a deal with Dangote could end Ghana’s monthly $400 million fuel imports from Europe.
In another development, Sani Musa, a senator from Niger East, has commended President Bola Tinubu for his decision to remove the fuel subsidy. In a Friday interview with Channels TV, Musa called the subsidy removal one of the best decisions for Nigeria. President Tinubu had initially announced the complete removal of the subsidy on May 29, 2023, which led to a spike in fuel prices, higher inflation, and increased costs for various goods. Senator Musa said the president made this choice with the country’s best interests at heart.
“We want to make sure that our actions won’t negatively affect Nigerians,” he stated.
