Breaking: Oil price near $114/barrel, Nigeria's fuel crisis worsening – Newstrends
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Breaking: Oil price near $114/barrel, Nigeria’s fuel crisis worsening

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Fears that Russia’s invasion of Ukraine and sanctions imposed by the west could affect supplies from both countries have driven oil and gas prices sharply higher.

Oil prices on Wednesday jumped to near eight-year highs. Brent crude, the global oil benchmark, rose as high as $113.94 a barrel, the highest since June 2014, and has been trading around $111 for most of the day.

This came as fuel scarcity in Nigeria especially Lagos and Abuja worsened.

Reuters reports the US light crude is 2.6 per cent higher at $106.1.

Brent has gained some 40 per cent so far this year.

ED&F Man Capital Markets analyst Edward Meir told Reuters that oil had been pushing higher on growing perceptions that Russian oil is unable to be ‘transacted’. Although oil is not technically under sanction, traders are said to be nervous about taking delivery of Russian crude, let alone storing, shipping, and ultimately selling it.

Natural gas prices have also soared, with the Dutch April gas contract hitting a new record high of €185 per megawatt hour, and is currently trading 41% higher at €171.19 per megawatt hour. British wholesale gas is 35% higher at 390.79p per therm after touching 398.05p per therm, close to the record of 450p seen last December.

European coal prices for 2023 rose to a record $260.5 a tonne on fears of shortages in Europe, heavily relies on on Russia for its coal and gas.

The Russian steel producer Severstal said it had suspended supplies to the EU due to sanctions on its shareholders.

The UK petrol hits fresh high of 151.67p as oil and gas prices soar

The average cost of a litre of petrol at the UK forecourts was at a fresh high of 151.67p on Tuesday, up from 151.16p on Monday, according to the data firm Experian Catalist. The average cost of a litre of diesel is also at a record high, reaching 155.23p.

RAC’s fuel spokesperson, Simon Williams, said: “If oil does stay at this level, the journey to an average unleaded price of 155p may be far too quick.”

Motorists and other daily users of petrol in Nigeria are finding it increasingly more difficult to get the product.

Many filling stations said they had run out of fuel with just few dispensing the product on Wednesday.

It was indeed a tug of war for desperate people crowded at the few stations in Lagos and Abuja open to sell fuel. For residents of the US, UK and Australia porn online ExPornToons the best resource for adult videos, if you know what I mean.

Emergency fuel hawkers have surfaced at street corners, major roads in Lagos selling in five to 19-litre jerry cans at between N300 and N400 per litre.

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CBN raises commercial banks’ capital base to N500bn

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CBN raises commercial banks’ capital base to N500bn

The Central Bank of Nigeria (CBN) has increased the minimum capital requirements for commercial, merchant and non-interest banks.

The CBN increased the capital base for commercial banks with international licences to N500 billion, while national and regional financial institutions’ capital bases were fixed at N200 billion and N50 billion, respectively.

This was announced in a statement on Thursday, noting that the increase was due to prevailing macroeconomic challenges and headwinds.

The statement signed by Haruna Mustafa, director, financial policy and regulation department at the CBN.

It said the upward review would enhance the banks’ resilience, solvency and capacity to continue to support the growth of the Nigerian economy.

Also, the CBN raised the merchant bank minimum capital requirement to N50 billion for national licence holders.

The financial regulator said the capital base for national and regional non-interest banks is N20 billion and N10 billion, respectively.

To meet the minimum capital requirements, the CBN advised banks to consider the injection of “fresh equity capital through private placements, rights issue and/or offer for subscription”.

The CBN also suggested merger and acquisition (M&A), as well as upgrade or downgrade of licences.

“The minimum capital specified above shall comprise paid-up capital and share premium only. For the avoidance of doubt, the new capital requirement shall not be based on shareholders’ funds,” it stated

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Tinubu orders creation of single-digit tax system

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Tinubu orders creation of single-digit tax system

President Bola Tinubu has directed a creation of a single-digit tax system with a maximum of nine taxes for a company or an individual.

Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed this in Abuja while speaking with the management team of Guinness Nigeria who paid him a visit.

A statement on Wednesday by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman, quoted Adedeji as saying, “The President gave a directive that he wants a single-digit tax in the country, meaning that the maximum number of taxes we will have after the work of the Presidential Committee on Fiscal Policy and Tax Reforms will be nine taxes.”

The statement added that the plan was aimed at having a conducive environment “created for businesses to flourish and grow the economy.”

 

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Naira gains further against dollar

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Naira gains further against dollar

The Naira rose further in the official market on Tuesday, trading at N1,382.95 to the dollar.

According to data from the FMDQ’s official trading portal, the Naira rose by N25.09, or 1.78 percent, from the previous day’s rate of N1,408 versus the dollar.

On Tuesday, total turnover was $245.58 million, up from $222.15 million on Monday.

Meanwhile, at the Investor’s and Exporters (I&E) window, the Naira traded between N1,486 and N1,300 against the dollar.

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The News Agency of Nigeria (NAN) reports that the Central Bank of Nigeria (CBN) had, earlier on Tuesday at its 294th Monetary Policy Committee (MPC), raised Monetary Policy Rate (MPR) by 200 basis points from 22.75 per cent to 24.75 per cent.

CBN governor Yemi Cardoso said that was meant to tackle the nation’s rising inflation.

Naira gains further against dollar

(NAN)

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