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Marketers Predict Petrol Price Could Further Drop by N8/litre

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The pump price of petrol could drop further by between N5 and N8 per litre, operators in the downstream oil sector have said.

According to oil marketers, the crash in crude oil price warranted the recent slashes in petrol price by the Petroleum Products Pricing Regulatory Agency.

They noted that the current PMS cost of N123.5/litre to N125/litre could drop further when other operators join the Nigerian National Petroleum Corporation to start importing products.

Senior officials of the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria, however, noted that this would happen when every downstream petrol importer begins to access the dollar at the same rate with NNPC.

The Chairman, Board of Trustees, IPMAN, who doubles as Group Executive Director, Nipco Plc, Aminu Abdulkadir, said that the price band for petrol would go down as far as crude oil prices stayed low.

Abulkadir, who said this in a television interview monitored by our correspondent in Abuja, noted that PPPRA would always provide a band because the price of the commodity was not definite.

He said, “Dealing with pump products is something that is not definite and that is why the PPPRA provides a band. A band is a range.

“Today, as the price is at N123.5/litre, I believe that by the time the market is totally free for marketers to import on their own, the band could still come lower than what it is by at least N5 to N8.”

On whether PPPRA would still determine the price of petrol for all dealers, he stated that the agency would mainly be saddled with the duty of providing a price band.

The IPMAN boss observed that the fluctuation in global crude oil prices would cause changes in petrol price in Nigeria.

Abdulkadir said, “They (PPPRA) will always partake in determining a band and not to give a fixed price. As the price of crude oil increases, the price of petroleum products will also increase but not as sharply as in an under-deregulated market.

“Different filling stations will sell at different prices and that is the essence of freeing the market. Definitely you will not get a fixed price but as the deregulation matures, the difference in the prices of retail outlets will not be up to N1.

He added, “By the time the industry understands the deregulation very well, you will find out that the difference between one retail outlet and the other will not be more than 50k to 80k because efficiency will come to play.”

On his part, the National President, PETROAN, Billy Gillis-Harry, told our correspondent that marketers would also want to see policy stability as the downstream sector sets for full deregulation.

Gillis-Harry, who admitted that petrol price would drop in a fully deregulated market, canvassed the domestic refining of petroleum products as against the massive dependence on imports.

He further noted that it was important for marketers to have access to loans in order to ensure the availability of products in all geographical zones of Nigeria to drive economic development.

The Punch

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Economy

Naira Makes More Recovery, Sells at N1,453/$1

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The Naira continued its appreciation at the official market on Thursday, March 21, 2024 to close at N1,453.28/$1, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).

This represents an appreciation of N39.33 when compared to the N1,492.61/$1 it closed on Wednesday, March 20, 2024.

The intraday high was N1,598/$1, while the intraday low was N1,300/$1, representing a wide spread of N298/$1.

Similarly, the Naira appreciated against the dollar at the parallel window to trade at N1,500/$1, this represents an appreciation of N20.00 as against the N1,520 /$1 it traded the previous day.

The Naira also appreciated slightly against the British Pound to trade at N2,000/£1 as against the previous trading day’s price of N2,020/£1 representing a gain of N20 for the local currency.

The Canadian dollar, however, closed flat against the naira to trade at N1,270/CA$1 same as the N1,270/CA$1 it traded the previous day representing a decline of N20 in the local currency.

The Naira gained N30 against the Euro to trade at N1,670/€1 as against the previous closing price of N1,700/€1.

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Economy

Naira Gains Against Dollar, Trades at N1,603/$1

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The Naira, Tuesday continued its recovery against the American dollar as it traded at N1,603.38/$1, data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) window has shown.

This represents a gain of N15.48 when compared to the N1,617.96/$1 it closed on, on Monday, March 11, 2024.

The intraday high was N1,637/$1, while the intraday low was N1,425.35/$1, representing a lean spread of N211.65/$1.

Meanwhile, the Naira gained N12 against the dollar at the parallel market as the local currency appreciated to N1,603/$1 as against the N1,615 /$1 it traded the previous day. As it stands, the naira is trading at the same rate at both official and parallel windows.

The Naira, however, slumped against the British Pound to trade at N2,050/£1 as against the previous trading day’s price of N2,030/£1 representing a loss of N20 for the local currency.

After about two weeks of closing flat against the Canadian dollar, the naira slumped massively to trade at N1,300/CA$1 on Tuesday, representing a decline of N150 when compared to the N1,150/CA$1 it traded the previous day.

The Naira lost N35 against the Euro to trade at N1,740/€1 as against the previous closing price of N1,705/€1 representing a loss of N35 for the local currency.

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Economy

Binance to Close Shop in Nigeria, Stops Transaction, Trading in Naira

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By Reuters – Binance will stop all transactions and trading in Nigeria’s local currency after March 8 amid a country-wide crackdown on crypto exchanges that have been blamed by authorities for feeding a black market for foreign exchange.

It will stop supporting withdrawals after Friday and any remaining balances in Nigerian Naira will be automatically converted into Tether – a stablecoin whose value is pegged to the U.S. dollar.

Last week, Nigerian authorities detained two Binance senior executives on undisclosed charges as part of the crackdown.

They were still in custody, their local lawyer said before a parliamentary committee on Monday.

Source: Reuters

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