File Photo
The importation of Premium Motor Spirit (PMS) into Nigeria is to
gulp extra cost of over N2.369 billion per day from Federal Government
and marketers as the landing cost for fuel has soared to N212.7 per
litre.
This came as oil prices hit their highest levels since July 2015
with Brent reaching $58.37 and $55.24, before paring gains on the strong
dollar.
Buoyed by this, the Federal Government, checks by New Telegraph
showed yesterday, is already mulling total deregulation of the
downstream sector.
While the modulated bracket of N135-N145 is given as official price
for fuel, checks showed that extra N67.7 is incurred on over 35 million
litres daily imports as the landing cost soared to N212.7 per litre.
Head of Energy Research at Ecobank, Dolapo Oni, stated that the
landing cost for PMS was N165 per litre for a $52 per barrel price.
“When oil price was at $52 dollars per barrel, the landing cost
was N165 per barrel, later when it was $55, the price soared to N210
per litre,” the financial analyst said.
Now that it is $58 per barrel, the landing cost hovers around N213 per litre, checks by New Telegraph showed.
The Central Bank of Nigeria (CBN) had earlier asked banks to submit
bids for a “special currency auction” to clear the backlog of matured
outstanding dollar obligations for petrol importers and selected sectors
of the economy.
The Petroleum Products Pricing Regulatory Agency (PPPRA), an agency
saddled with pricing regulation, has taken down its website, keeping
the public in the dark on change in pricing template for petroleum
product.
Spokesperson for the agency, Lanre Oladele, could not be reached
for comments. His mobile phone was not available while SMS sent was not
replied.
The PPPRA website, however, showed default webpage, which read: “SORRY!
If you are the owner of this website, please contact your
hosting provider: webmaster@ pppra.gov.ng. “It is possible you have
reached this page because: The IP address has changed. There has been a
server misconfiguration.
The site may have moved to a different server.” Earlier
estimates from the PPPRA showed that the country needs an average of
$500 million every month to import refined petroleum products, since all
of its three refineries are currently producing at less than 25 per
cent of their installed capacity.
The price of PMS could surge to over N220 per litre if the new
realities of the oil market are taken into consideration. The oil prices
turned negative after earlier hitting 18-month highs yesterday, the
first trading day of 2017, as the dollar rallied to its highest since
2002.
Traders said crude prices were buoyed earlier in the day by hopes
that a deal between OPEC and other big oil exporters to cut production,
which started on Sunday, would drain a global supply glut.
Brent futures were down 95 cents or 1.7 per cent at $55.87 a barrel
by 12:05 p.m. EST. U.S. West Texas Intermediate (WTI) crude fell 95
cents or 1.8 per cent to $52.77 per barrel. Earlier in the session, both
oil contracts hit their highest levels since July 2015 with Brent
reaching $58.37 and $55.24, before paring gains on strong dollar.
“The dollar strength is certainly weighing on oil prices,” said
Andrew Lipow, President of energy consulting firm, Lipow Oil Associates
in Houston, noting U.S. stock markets also pared their gains from
earlier in the day with the dollar rally.
Reliance Training and Management Consulting, a dynamic, fast growing indigenous entity, was established and duly registered with the aim to nurture, develop and innovate people and organisations through customized training, development and management consulting services, with excellent performance, deep sense of commitment, transparency, honesty and responsibility, to demonstrate the highest standard of technical and operational expertise.
Reliance is competently positioned to provide technical knowledge and skills relevant to practical management and business problems, to stimulate the creativity and innovation necessary to build a better community, a better nation and a better world with a committed mind set to contributing our best to the maximization of personal potentials and skills toward optimizing productivity and achieving organisational goals.
for more information click RELIANCE TRAINING AND MANAGEMENT CONSULTING
No need to visit Tonygists just use the android application click for more info Tonygists android application
Visit some of the website built by tonygists
1. south south penpushers : south south pen pushers
2. kingdom builders : Kingdom builders
Tonygists bro: honest zone
Are You On youtube? subscribe to Hot GIST Channel Latest Updates - @Hot Gist
Are You On youtube? subscribe to Gospel World (which is also owned by Tony Gists) youtube Channel Latest Updates - @Gospel world
Are you on audio mack? Follow Tonygists on audio mack to listen and download to the latest Mfm sermons Latest Updates - @Tonygists
Follow Tonygists on LinkedIn to get more jobs opportunities Latest Updates - @Tonygists
Are You On youtube? subscribe to Honest Ose Channel Latest Updates - @Honest Ose
Are You On youtube? subscribe to Honest Web Solutions Channel Latest Updates - @Honest Web Solutions
Are You On youtube? subscribe to Xtremely Honest Channel Latest Updates - @Xtremely Honest
Are You On Twitter? Follow Us Now For Latest Updates - @tonygists
Are You On FACEBOOK? Like Our Page For Latest Updates - tonygists
Are You On FACEBOOK? Join Our Group For Latest Updates And Interactions - TonyGists
© 2024 Tonygists | Portions are © 2024 Associated Press. All rights reserved. This material may be published, broadcast, rewritten, or distributed.
