Business
Abuja fuel queues persist as oil hits $66 ahead of OPEC meeting
The price of crude oil (Brent) itched close to $66 a barrel at the close of business on Monday, the highest since its biggest slump last November.
This is coming ahead of a meeting of the Organisation of Petroleum Exporting Countries on Thursday.
But fuel queues have persisted in Abuja and there are fears that it may spread to other parts of the country as many filling stations are not selling the product, following continued increase in crude price at the international market.
The situation has continued to cause traffic snarls in the Federal Capital Territory (FCT), including Olusegun Obasanjo Way and Sultan Abubakar Way.
The seeming scarcity of the product in parts of the country is based on the fact that pump price of petrol is tied to the price of crude oil in the international market under the deregulation of the downstream sector of the petroleum industry.
While the US oil price rose by 2.2 per cent to $62.90 a barrel, after opening at $61.53, and hitting a low of $61.53, the Brent crude rose by 2.2 per cent to $65.90 a barrel, after opening at $64.50, and hitting a low of $64.50.
The US crude lost 3.0 per cent on Friday while Brent crude futures fell 3.9 per cent, in their second straight daily loss on profit-taking from a 13-month high.
However, the crude oil rebound came after the commodity took a pause on Friday on profit-taking from a 13-month high, partly due to hopes about the United States stimulus measures and the latest positive updates regarding the COVID-19 vaccines.
Oil prices gained around 17.5 per cent in the fourth consecutive monthly gain, as the oversupply concerns receded after OPEC+ compliance with the agreed supply cuts and Saudi Arabia’s voluntary cut.
The fuel queues may spread to other parts of the country despite assurances by the NNPC that it is not planning any increase in the pump price of petrol this month.
Amid fears that the NNPC may hike the pump price of petrol, retailers have tightened sales on the grounds of supply scarcity from depots where they alleged that ex-depot price has gone up, despite assurances by the Nigerian National Petroleum Corporation of no price adjustment.
The corporation, in a statement, had said that contrary to speculations of an imminent increase in the price of petrol in the country, the ex-depot price of petrol in March would remain unchanged.
It is not clear how OPEC will act when members gather on Thursday, with the Saudi Arabian Energy Minister, Abdulaziz Bin Salman, calling for producers to remain “extremely cautious.”
Oil’s recovery from the impact of the pandemic has been driven by Asian demand, as well as fiscal and monetary stimulus as data showed most key manufacturing economies gained ground last month, with China staying in expansionary territory.
Positive sentiment in equity markets also aided crude, while President Joe Biden’s $1.9 trillion relief plan moved closer to realisation after passage at the House of Representatives.
Saudi Arabia’s output curbs, the improving demand outlook as vaccines are rolled out, and the growing popularity of commodities as a hedge against inflation have pushed oil higher this year.
There have been indications in recent weeks that the rally will continue as the producer response trails consumption, while maintenance in North Sea fields is set to reduce supply.
At stake in Thursday’s meeting is how much OPEC+ output gets restored and at what pace, with current reductions amounting to just over seven million barrels a day, or 7 per cent of global supply.
The 23-nation coalition will decide whether to revive a 500,000-barrel tranche in April, and in addition, whether the Saudis confirm an extra one million barrels they have taken offline will return as scheduled.
The freeze-driven shuttering of core sections of the US refining system isn’t all good news for rival plants in Europe because down at the bottom of the barrel, losses are deepening.
Kazakhstan relaxed its oil production restraint in February, allowing output to jump to its highest since the current OPEC+ supply pact came into effect at the start of May.
Reacting to the fuel queues, the Group General Manager of the Public Affairs Division at the NNPC, Dr Kennie Obateru, said the corporation had no plan to raise the price of petrol in March in order not to jeopardise ongoing engagements with organised labour.
It warned petroleum products marketers not to engage in an arbitrary price increase or hoarding of petrol so as not to create artificial scarcity and panic buying.
Railway
Lagos Rail Mass Transit part of FG free train ride – NRC
Lagos Rail Mass Transit part of FG free train ride – NRC
The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.
The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).
This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.
While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.
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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.
“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.
Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.
He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.
Lagos Rail Mass Transit part of FG free train ride – NRC
Business
NNPC denies claim of Port Harcourt refinery shutdown
NNPC denies claim of Port Harcourt refinery shutdown
The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.
The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.
Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.
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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.
“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”
He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”
NNPC denies claim of Port Harcourt refinery shutdown
Business
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.
The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.
The arrangement will be in effect from December 19, 2024, to January 30, 2025.
Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.
Transactions to occur at the prevailing NFEM rate
The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.
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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.
The circular read in part:
“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).
This window will be open between December 19, 2024 to January 30, 2025.
“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”
The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”
These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.
This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
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