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Higher Oil Price Forces Marketers Off Import - Politics - Nairaland

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We Can No Longer Import, Sell Fuel At N145/litre — Marketers / 36 State Governors, The Courses They Studied & The Higher Institutions Attended / Oil Price Crash: Worst Days For Nigeria Over – OPEC (2) (3) (4)

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Higher Oil Price Forces Marketers Off Import by Islie: 7:15am On Jan 06, 2017
NNPC now sole importer

THE foreign exchange scarcity and recent appreciation of the price of crude oil in the international market are threatening smooth supply of petrol in the country, Daily Trust has gathered.

Daily Trust gathered that for over three months now marketers have not been importing the product into the country due to the tricky nature of the situation.

“Right now government is not paying subsidy, even with the lower exchange rate of 285/$1, the increase in the price of crude oil has shot the landing cost of the refined product by about 40 percent,”, a marketer who asked for anonymity told Daily Trust yesterday.

“When the partial deregulation was announced last year the price of Brent crude oil was averagely at $45/ barrel but before the year ran out the crude price jumped to $56/barrel, the situation that pushed the price per metric tonne of the Premium Motor Spirit (PMS) to rise from $400 to about $560 by the refiners”, the marketer said.

“Also, the gap between the current official exchange rate of N305/$1 and that of the petroleum import rate of N285/$1 at the liberalisation period left the marketers with the exchange rate differential of about $20 between the two rates.”

The partial liberalisation announced by the federal government in May 2016, had technically ended the subsidy regime, but the marketers say unless there is adjustment of price they can’t compete in the market.

With the country’s refinery operating in fits and start, Nigeria relies largely on the importation of refined products to meet its local needs of about 30 to 35 million litres per day.

Meanwhile, the Nigerian National Petroleum Corporation (NNPC) yesterday said it is targeting to make the country self-sufficient in product refining by 2019.

The Group Managing Director of the NNPC, Dr Mikanti Baru told the officials of Media Trust Limited yesterday that his management have ordered for the complete audit of the four refineries and talks are at top gear to bring in original equipment manufacturers to the refineries for the turnaround maintenance.

“We are pushing together various programs to ensure that we achieve at least 60 percent local refining this year, there are changing procedures a little bit, we are focusing on the process licensors to come and audit the process units of our refineries and with designers of the refineries which some of them have started coming in..” we hope if we do these systematically, geared towards 80 percent by the end of 2018 and with other efforts from other refineries that are coming on board we want to quit importation”.

The NNPC boss however pointed out that at the moment, the corporation is almost the sole importer of petroleum products unlike the situation in September 2016 when private sector companies were importing up to 50% of Nigeria’s consumption.

Industry analysts who spoke to Daily Trust said the country is once again sliding into what one of them called a pseudo subsidy situation with the only difference that it is now government to government with NNPC being forced to ask for the payment of the differential between the landing cost of refined products especially PMS which is pegged at 145 Naira per litre.

The analysts went on to say that having been forced to nearly double the price of fuel mid 2016, it is now politically difficult for the government to consider another hike even when other oil rich countries like Saudi Arabia are going in that direction.


http://www.dailytrust.com.ng/news/general/higher-oil-price-forces-marketers-off-import/179368.html


lalasticlala
Re: Higher Oil Price Forces Marketers Off Import by sarrki(m): 7:19am On Jan 06, 2017
Era of subsidy is gone

Baba will not be a party to that

God bless my president

G9d bless Federal Republic of Nigeria

9 Likes

Re: Higher Oil Price Forces Marketers Off Import by TRADELYN: 7:19am On Jan 06, 2017
Your comment clearly shows you don't understand how it works or you are just a stubborn supporter. undecided

Petrol price would have gone up again since last year (Q3 or Q4), but Buhari did not okay it despite so much pressure since it will aggravate the present hardship of Nigerians.

Now, only NNPC is importing and there is a report that the landing cost is about N213/litre, but the official selling price remains @ N145/litre.

That means subsidy is now done indirectly via the back door.

#Suffering&SmilingPipu. sad

sarrki:
Era of subsidy is gone

Baba will not be a party to that

God bless my president

G9d bless Federal Republic of Nigeria

35 Likes

Re: Higher Oil Price Forces Marketers Off Import by Royalfurnitures: 7:30am On Jan 06, 2017
I think the permanent solution to this issue is total deregulation..

Pls check out my signature for quality and durable furniture

1 Like

Re: Higher Oil Price Forces Marketers Off Import by progress69: 7:32am On Jan 06, 2017
You were making sense until u decided to go emotional about it in your last statement.
TRADELYN:
Your comment clearly shows you don't understand how it works or you are just a stubborn supporter. undecided

Petrol price would have gone up again since last year (Q3 or Q4), but Buhari didn't not okay it despite so much pressure since it will aggravate the present hardship of Nigerians.

Now, only NNPC is importing and there is a report that the landing cost is about N213/litre, but the official selling price remains @ N145/litre.

That means subsidy is now done indirectly via the back door.

#Suffering&SmilingPipu. sad

3 Likes

Re: Higher Oil Price Forces Marketers Off Import by greatgod2012(f): 7:32am On Jan 06, 2017
And we consumers are the ones that will ultimately suffer for this.


Each day, different problems!
This country don tire person I swear

8 Likes

Re: Higher Oil Price Forces Marketers Off Import by TRADELYN: 7:36am On Jan 06, 2017
Not this time because Naija's economy is in a big mess or you should be ready to buy for at least N250/litre. undecided
Royalfurnitures:
I think the permanent solution to this issue is total deregulation..

Pls check out my signature for quality and durable furniture
Re: Higher Oil Price Forces Marketers Off Import by Sirfemxy: 7:39am On Jan 06, 2017
How many times are we going to hear about total turnaround maintenance of NNPC refineries in this country?

7 Likes

Re: Higher Oil Price Forces Marketers Off Import by TRADELYN: 7:39am On Jan 06, 2017
progress69:
You were making sense until u decided to go emotional about it in your last statement.
That's the bitter truth.
This is based on my understanding about elementary economics taught in secondary school. I don't wanna go the advanced level because If I do, you might not go to work today if you have as you will know how useless money has become.

9 Likes

Re: Higher Oil Price Forces Marketers Off Import by chronique(m): 7:44am On Jan 06, 2017
Another day, another problem; that's why it's called Nigeria. By the time the marketers are out of business, their businesses would fold up and we'd have more jobless folks in the country thereby,increasing the potential of crime rates going up... It's not easy being a Nigerian.

1 Like

Re: Higher Oil Price Forces Marketers Off Import by hmuhammad(m): 7:44am On Jan 06, 2017
It is not business as usual.

God bless President Buhari
God bless The Federal Republic of Nigeria

1 Like

Re: Higher Oil Price Forces Marketers Off Import by princemillla(m): 7:45am On Jan 06, 2017
All is well
Re: Higher Oil Price Forces Marketers Off Import by Adesiji77: 7:45am On Jan 06, 2017
Fuel scarcity loading angry lipsrsealed

1 Like

Re: Higher Oil Price Forces Marketers Off Import by TRADELYN: 7:46am On Jan 06, 2017
The only way out is to let technocrats (home and abroad) manage the economy; not leaving it in the hands of full time politicians. undecided
Donald Trump is already appointing great guys in key positions before taking over from Obama. angry

With the way things are going, even the EFFC will find it hard to fight corruption soon. embarassed

I am a Christian, but I hate it when I hear people say pray for the economy to be better.

If you doubt my views, just put GEJ there and in 2 months you will see positive changes because you can't buy experience. tongue
#JustBeingObjective

16 Likes 1 Share

Re: Higher Oil Price Forces Marketers Off Import by ultimate73(m): 7:48am On Jan 06, 2017
nawa o
Re: Higher Oil Price Forces Marketers Off Import by proeast(m): 7:50am On Jan 06, 2017
I dey see danger, WAHALA DEY!
Re: Higher Oil Price Forces Marketers Off Import by Nobody: 7:56am On Jan 06, 2017
TRADELYN:
The only way out is to let technocrats (home and abroad) manage the economy; not leaving it in the hands of full time politicians. undecided
Donald Trump is already appointing great guys in key positions before taking over from Obama. angry

With the way things are going, even the EFFC will find it hard to fight corruption soon. embarassed

I am a Christian, but I hate it when I hear people say pray for the economy to be better.

If you doubt my views, just put GEJ there and in 2 months you will see positive changes because you can't buy experience. tongue
#JustBeingObjective

You spoiled everything calling that guy's name.

6 Likes

Re: Higher Oil Price Forces Marketers Off Import by Oildichotomy(m): 7:57am On Jan 06, 2017
Seriously, I don't have any fcukking idea what they are doing in AsoRock. It just sounds like those dunces are sitting their assses down there and collecting allowances.


Somebody should just tell me what they are doing? What is this annoying news one read everyday

4 Likes

Re: Higher Oil Price Forces Marketers Off Import by blackpanda: 7:59am On Jan 06, 2017
The only way out is for Nigeria to start refining its own oil and save the little forex coming for high oil price. Plus niger delta militants are not helping matters

4 Likes

Re: Higher Oil Price Forces Marketers Off Import by signature2012(m): 8:08am On Jan 06, 2017
Nigeria jagajaga everything scatter scatter angry angry
Re: Higher Oil Price Forces Marketers Off Import by Nobody: 8:09am On Jan 06, 2017
if this govt was a thinking one, we need not be importing petroleum products. for ow long will nigeria be recipients of finished products made abroad. shior

1 Like

Re: Higher Oil Price Forces Marketers Off Import by shukudi(m): 8:10am On Jan 06, 2017
chronique:
Another day, another problem; that's why it's called Nigeria. By the time the marketers are out of business, their businesses would fold up and we'd have more jobless folks in the country thereby,increasing the potential of crime rates going up... It's not easy being a Nigerian.
. Can't the marketers pull fractions of their money together to work towards local refining, rather than complaining of forex everyday. The marketers are one of d major problems of the oil sector.

1 Like

Re: Higher Oil Price Forces Marketers Off Import by bangging(m): 8:11am On Jan 06, 2017
TRADELYN:

That's the bitter truth.
This is based on my understanding about elementary economics taught in secondary. I don't wanna go the advanced level because If I do, you might not go to work today if you have as you will know how useless money has become.
nice 1 my lander friend, we are suffering, smiling yet we pretend a lot... God help us...Fala lives on...

4 Likes

Re: Higher Oil Price Forces Marketers Off Import by nwakibie3(m): 8:11am On Jan 06, 2017
If an individual (dangote) can build a refinery, then what stops the federal government from building one? Does it mean that dangote is richer than the federal government?
Re: Higher Oil Price Forces Marketers Off Import by progress69: 8:18am On Jan 06, 2017
TRADELYN:

That's the bitter truth.
This is based on my understanding about elementary economics taught in secondary. I don't wanna go the advanced level because If I do, you might not go to work today if you have as you will know how useless money has become.

Now u are making it worse by ranting like a kid.

2 Likes

Re: Higher Oil Price Forces Marketers Off Import by davodyguy: 8:18am On Jan 06, 2017
It's unfortunate. I knew this was going to happen, as soon as international oil price PB picks up.

Only solution now is to further reduce exchange rate of naira to dollar for the importers, even though this may affect the black market rate.

Now it stands at N285-$1

Reduce to $1=N250 for genuine importers only.

I sincerely hope this may reduce the black market rate.

The exchange rate went up because of the low price of crude oil. Now that price is picking up, Godwin Emefiele, if he knows what he's doing, should do the needful.

Under GeJ, when oil price PB was $100, exchange rate was between N150-160, whilst black market rate was at N170 to a $1

1 Like

Re: Higher Oil Price Forces Marketers Off Import by FunkyMetahuman: 8:36am On Jan 06, 2017
Whats exaxtly is the reason for the current dollar scarcity..
We thought it was due to crude oil price, now that oil price is increasing, shouldnt dollar flow also be increasing?
Re: Higher Oil Price Forces Marketers Off Import by iaatmguy(m): 8:47am On Jan 06, 2017
shukudi:
. Can't the marketers pull fractions of their money together to work towards local refining, rather than complaining of forex everyday. The marketers are one of d major problems of the oil sector.
They don't want to go out of business, they would rather see the country burn. Than their blood money REROUTED to the betterment of the country. Greedy and unpatriotic lot

2 Likes

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