Subsidy removal: Fuel price hike imminent as crude oil price inches towards $100 per barrel – Newstrends
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Subsidy removal: Fuel price hike imminent as crude oil price inches towards $100 per barrel

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1 year ago

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Subsidy removal: Fuel price hike imminent as crude oil price inches towards $100 per barrel

In the last three months since President Bola Tinubu announced the withdrawal of petroleum subsidy, Nigerians are still trying to grapple with the over 400 per cent increment while they continue to wait for the promised palliatives from the government.

But the increase in the price of crude oil in the international market could further increase the price of petroleum at the filling stations despite the promise by President Tinubu that PMS price will not increase further.

The crude oil price in the international market has risen to $94 per barrel, the highest in the past 10 months. Market observers believe that the price will cross the $100 mark as demand increases during winter.

In the last three months since President Bola Tinubu announced the withdrawal of petroleum subsidy, Nigerians are still trying to grapple with the over 400 per cent increment while they continue to wait for the promised palliatives from the government.

But the increase in the price of crude oil in the international market could further increase the price of petroleum at the filling stations despite the promise by President Tinubu that PMS price will not increase further.

The crude oil price in the international market has risen to $94 per barrel, the highest in the past 10 months. Market observers believe that the price will cross the $100 mark as demand increases during winter.

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In the past, this increment would have generated excitement because it would mean more revenue for the Nigerian government; however, the increment in crude oil price means Nigerians may have to pay more for fuel.

Last month, President Tinubu had promised that price would be maintained by “addressing the inefficiencies within the midstream and downstream petroleum subsectors to maintain prices where they are without having to resort to a reversal of the administration’s policy in the petroleum industry.”

On Friday, the Group Chief Executive Officer of NNPC Limited, Mele Kyari had told some members of the House of Representatives that the NNPC Retail is moving to acquire significant market shares in the downstream sector so as to have control of the downstream market.

It would be recalled that NNPC Retail had in December acquired the retail outlets of Oando Limited.

The deal according to Kyari means that the NNPC Retail now has 30 per cent of the market and is able to regulate prices through the market share. He explained that other petroleum marketers would be forced to maintain prices because NNPC Retail won’t increase prices.

“Some weeks ago in Lagos, There was a small queue because one company increased their price by N7. As simple as this, everybody rushed to our filling stations and a queue developed. This is the security that the PIA guarantees.

“That Nigerians will have choices and they will not be exploited. We will be the market balancer. We will create stability in the market and Nigerians will not be exploited,” he said.

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However, Nigerians are still concerned about the increment despite the assurance by the President and the oil chief, particularly with the deregulation of the sector.

An economist, Dr Babatunde Adeniran says an increment may be inevitable considering the factor of demand and supply which is playing out in the international market.

“Yes. It is inevitable because they (marketers) adjust prices depending on the market realities, i.e, forces of demand and supply,” Adeniran says while responding to a question on the chance of a price hike.

Alternatives energy sources

President Tinubu had in a national broadcast in August promised to invest N100 billion in Compressed Natural Gas (CNG) buses to mitigate the impact of subsidy removal.

“The Nigerian Government has put aside N100 billion to purchase 3,000 twenty-seater buses powered by Compressed Natural Gas for deployment in all the states in the next nine months,” President Buhari said.

Adeniran urged the government to provide assistance to the masses by subsidizing the CNG kits.

“One of the means to mitigate the effect is to source for an alternative source of energy. One such alternative is the CNG. It remains the best source since it is relatively cheaper and cleaner.

“But to assist, the government can subsidize the CNG kit. If the government is able to achieve that, more people will embrace this.

“Nigeria has the capacity to meet the demand; we currently flare a lot of gas. Instead of flaring the gas, we can channel it into CNG which would be more productive,” he said.

Subsidy removal: Fuel price hike imminent as crude oil price inches towards $100 per barrel

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Tron Founder joins Trump-backed crypto project, invests $30m

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46 minutes ago

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November 27, 2024

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Justin Sun

Tron Founder joins Trump-backed crypto project, invests $30m

Justin Sun, the founder of the Tron Blockchain has joined the World Liberty Financial project as an advisor after investing $30 million into the project.

The World Liberty Financial project is backed by the Donald Trump family and aims to become a leading crypto project in the global crypto space.

Justin Sun joined the project as an advisor after purchasing $30 million worth of WLFI tokens making him the largest shareholder in the project.

The development was announced via the official X page of the World Liberty Financial project welcoming the Crypto founder to the project.

“Exciting Announcement! 

We’re honored to welcome @justinsuntron as an advisor to World Liberty Financial (WLFI)! Justin is the founder of @TRONDAO an advisor to @HTX_Global, and a supporter of @BitTorrent 

. A graduate of the University of Pennsylvania, he recently won Sotheby’s auction for the iconic banana artwork.  

#TRON is among the world’s top 10 cryptocurrencies and one of the largest public blockchains. Justin’s insights and experience will be instrumental as we continue to innovate and grow. Welcome to the team, Justin!” WLFI tweeted

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Justin Sun’s $30 million investment in the project boosted the sales traffic of its native token raising it from $21 million to $53 million.

The increased inflow of capital into the project better positions the project to achieve its goals which include a stablecoin-focused credit card and infrastructure enhancement.

Justin Sun brings onboard his wealth of experience as the founder of one of the Top 10 blockchains in the industry by market cap and his advisory role at HTX and BitTorrent.

Sun’s previous track record of bold investments and innovation is expected to be a huge boost to the WLFI project.

The WLFI gig is another feather to the hat of Justin Sun as he expands his activities in the crypto space. The Tron founder recently purchased a 6.3 million NFT art in a bid to revive a stagnant sector.

The World Liberty Financial project is backed by Donald Trump’s family and it looks to promote the mass adoption of Defi and stablecoins. This project aligns with the Donald Trump pro-crypto mantra and has all the credibility a project of that status needs.

Tron Founder joins Trump-backed crypto project, invests $30m

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Toyota By CFAO showcases latest Land Cruiser Prado, others at P’Harcourt Open Day 

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2 hours ago

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November 27, 2024

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Toyota By CFAO showcases latest Land Cruiser Prado, others at P’Harcourt Open Day 

Toyota By CFAO, the authorized distributor of Toyota vehicles in Nigeria, has commenced a three-day special display of the latest new Toyota models from the company at an Open Day organised in Port Harcourt, Rivers State, for residents of the city and its surrounding areas.

The Toyota By CFAO Open Day holds from Tuesday, November 26 to  Thursday, November 28, 2024, according to a statement by the company.

The event running from 9am to 5pm each day is taking place at the auto company’s showroom located at 184B, Trans-Amadi Industrial Layout, Port Harcourt.

It discloses that the exciting event will feature the highly anticipated 2024 Toyota Land Cruiser Prado, one of Toyota’s flagship models, alongside a range of other exceptional vehicles tailored for the Nigerian market.

This, it notes, is an exclusive opportunity for attendees to explore the latest in automotive excellence, discover new vehicle options, and benefit from Toyota By CFAO’s End of Year Bonanza.

General Manager of CFAO Mobility Port Harcourt, Julius Fasetire, encourages all residents to “come witness history in motion as we proudly unveil the All-New 2024 Toyota Land Cruiser Prado.

“Be among the first to explore this remarkable masterpiece and discover our full range of Toyota vehicles. Don’t miss out on the chance to experience automotive excellence and enjoy a free diagnostic check for your Toyota vehicle!”

The 2024 Toyota Land Cruiser Prado has already generated excitement across the country, following its recent unveilings in Lagos and Abuja.

The product is quickly becoming one of the most sought-after sports utility vehicles in Nigeria, appealing to both corporate and individual buyers.

With over 11.3 million units sold globally in more than 170 countries, the Land Cruiser Prado is renowned for its rugged off-road capabilities and comfort for everyday driving.

The firm says this year’s model comes in two distinctive editions – the Limited Edition (First Edition) and the Adventure Edition – both equipped with a 2.4L turbocharged gasoline engine and an 8-speed automatic transmission, ensuring superior performance both on and off the road.

Toyota By CFAO also says it ensures that genuine parts and a comprehensive 3-year/100,000 kilometre warranty are available for all customers.

In addition to the Land Cruiser Prado, the event will showcase a variety of other popular Toyota models including the Belta, Rumion, RAV4, Camry, and Hiace.

The Open Day, it stresses, promises to be a must-attend event for anyone interested in exploring the world of Toyota vehicles, from luxury to practicality, and experiencing firsthand the future of automotive technology.

The company says more details about the rich offering of Toyota in the Nigeria market can be obtained from https://www.toyotabycfao.ng/.

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Nigeria’s foreign reserves in marginal increase, now $40.88bn 

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5 hours ago

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November 27, 2024

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Nigeria’s foreign reserves in marginal increase, now $40.88bn

 

Nigeria’s foreign reserves rose to $40.88 billion as of November 21, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said.

Cardoso disclosed this on Tuesday at a press conference after the Monetary Policy Committee’s 298th meeting in Abuja.

He said the external reserves grew from $40.06 billion at the end of October to $40.88 billion in November.

The amount represents an increase of $82 million or 2.05 per cent in 21 days.

“The external reserves rose marginally to 40.88 billion as of 21 November 2024, from 40.06 billion at the end of October 2024, available to finance 17 months of imports,” he said.

However, from the apex bank’s website, the increase in Nigeria’s foreign reserves showed $40.27 billion on November 22.

Cardoso also said, “The process of getting us where we are in terms of reserves has been a long one”.

“It is a clear indication that the policies we have put in place are certainly yielding fruits,” he added.

“However, and it’s very important to make a distinction here and to reiterate the fact that reserves are there for a multiplicity of different purposes, not least of which is to create buffers in the event of unanticipated shocks.

“So they are not there to simply whittle away. They are there to be used to more or less defend yourself where that becomes necessary

“And when we talk about shocks that are not anticipated, I think we can see how the global economies are.”

Cardoso also said the bank would continue to intensify efforts to stabilise the currency and prices.

The CBN governor said, “The currency has been stable compared to what it was in June”.

But he said for the value of the country’s currency to be stable, there must be increased exports and diversification of the economy.

Cardoso said diaspora remittance had increased due to policies put in place.

He commended those in the diaspora for helping the country accomplish over $600 million in remittances.

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