I have been thinking about the possibility that the new FX regime might lead to a further increase in the pump price of PMS in the country.

As it were, we have no idea of the exchange rate the NNPCL used as at the time they came up with their most recent price list. If they had used the official exchange rate at the time, which was around N465/$, then having to import fuel at the new rate of N700/$ (or whatever it will be) will surely lead to a significant jump in the pump price of pms.

However, I can remember that the President's first meeting was with the GMD of NNPCL and the CBN Governor. There is a possibility that, in that meeting, they might have discussed the issue of the unification of FX rates and then come up with a band which the new rate might likely be in the short term. If this were to be the case, then it is possible that the NNPCL GMD might have used this new band in fixing the pump price. If that were to be true, then there's nothing to fear about higher pump prices, but this is purely conjectures/speculative and may completely be false, in which case I would anticipate a new higher price list from the NNPCL soon.

The CBN has been subsidizing FX for a few people, while the rest of us continued to access FX at the parallel market. So, good riddance! However, I think the poor masses are in for a really terrible economic shock in the short-term from all these 'noble' policies. If those managing the affairs of the country have used the little national wealth to create relative prosperity for the people, then the economic shock wouldn't be as severe.

Tinubu is always taking decisions before thinking

Yes it will.

The inability of govt to prevent roundtrip of dollar from old official rate window where serious businessmen got good bargain to keep production cost down into leisurely and luxurious import based sector led to the lazy decision of collapsing both rates into one.

What it means is that superflous and leisurely imports like toothpick, gadgets, wine, cigars, cotton buds, milk, chocolate, iPhone and hair extensions or in short, things that don't drive up local production level of critical goods will see dollar at a lower rate than old black market rates, while serious importers of machineries and raw materials (petrol inclusive) critical to our industrial and pressing needs will start getting it at a higher rate unlike before when they had official access to it at a lower official rate.

In conclusion, the dollar rate collapse, the removal of petrol and education subsidies all have one thing in common and that is that the leaders failed in managing them well thereby allowing corruption to make them of lesser effect overtime and thus greatly affecting their strength of impact.
The right to have done was management of the corruption that detailed these schemes like is obtainable in advance nations who still maintain subsidies till date. Instead we choose to scrap our in favour of more infrastructure contracts to elite owned companies. Sad!

if dangote refinery come to reality prices of fuel wouldn't increase,unification would reduce import

Definitely it will , I just pity those that were celebrating useless unification

arejibadz:
if dangote refinery come to reality prices of fuel wouldn't increase,unification would reduce import

the alleged sole importer of fuel(NNPCL) was getting dollar at the lowest of all rates hitherto, with the lower rates and higher rates(black market) noe collapsed into one middle rate, expect petrol prices to go up first before it comes down if Dangote and co ever releases their dollar at a competitive rate to crash prices. We are now at the mercy of few capitalists who enjoyed lower dollar dollar rates on their way to prominence.

That why emefiele was pleading with Dangote the other day to release dollar at good rate in the future when his plant kicks off fully. It was on Nairaland FP.

SalamRushdie:
Definitely it will , I just pity those that were celebrating useless unification

Thank you. IPhone and Brazilian hair will become cheaper in exchange for petrol, industrial machine/raw material and critical goods going up.

It is a case of leisurely imports being equated to critical ones on preference scale because someone couldn't do the noble job of separating the two categories and prevent roundtrip of dollars across windows meant for both categories. Tinubu's policies are based on assumptions of what big businesses will do in reaction. He is obviously miscalculating and will play into the hands of our main lenders who are wise to maintain their own subsidies.

HIS in UK is riddled with injustice but they are managing it instead of scraping it in the face of stronger fiscal pressure. We are scraping ours to collapse our system into a puppet one for them. Pathetic.

Kennyfancy:
Tinubu is always taking decisions before thinking

Its a Bulaba balabu government

It will affect o, it will raise fuel cost initially and the price may rise higher than 500 naira per litre in the coming weeks. Now every importer has to source for his own dollars at the black market rate or at any rate they can get it ,the cost of which will be transfered on to the fuel buyers . So if oil prices goes high in the international market then we might likely see fuel going fornas high as 1000 naira . The everything is determined by market forces ,government is taking its hands off doing any business.

What will be affected is not only fuel but all importer goods and materials . We have to see how the implementation goes . The rates will eventually normalise and stabilise at a particular point but before getting to that point ,things may first move up then gradually come down. Willing buyer ,willing seller. It means buy your dollars at any rate you like and sell at any rate you like

CodeTemplar:
Yes it will.

The inability of govt to prevent roundtrip of dollar from old official rate window where serious businessmen got good bargain to keep production cost down into leisurely and luxurious import based sector led to the lazy decision of collapsing both rates into one.

I agree that the removal of subsidy was the easier option for government instead of addressing the corruption around the subsidy. What this suggests is that, it is difficult to trust the government to prevent or deal with corruption that may arise from the management of the removed subsidy funds.

Sometimes our people just analysis anyhow.
So which is more necessary in this case?
Cost of daily needs or only fuel and other bigger commodities?
Right now, we are going to get rice, tomatoes paste and other daily commodities at a cheaper rate in the main time to survive the hardship from the subsidy remover.
That's what we need before you talk about bigger businesses.
Learn short term, middle term and long term plans this is what Tinubu is doing right now.
I appreciate his efforts thurs far.