₦airaland Forum

...Pump prices could reach N650 outside Lagos

The removal of the peg on the naira thus allowing for a free float will force a review of the assumptions that led to the pump price of petrol at N488 per litre in Lagos, industry operators say.

Nigeria’s state-owned oil company, the Nigerian National Petroleum Company Limited (NNPCL) last month issued price guidance for its over 900 retail petrol stations and other marketers promptly adopted it.

These assumptions would however change as Naira rates converge with the parallel market rate which currently trades above N750/$1.

BusinessDay had earlier reported that the eventual exchange rate would determine petrol prices at the pump as Nigeria’s lack of refining capacity means it imports all the petroleum products it uses locally.

At the current petrol pricing template, the pump price of petroleum products will sell above N590 in Lagos. If the rate converges at N750 as some bankers tell BusinessDay, petrol prices will surge leaving the most efficient operator with relatively cheaper prices.

An analysis of the pricing template shows that product cost at N503.91 per litre and other costs including trader’s margin, freight, NPA port charges, NIMASA, financing costs, jetty storage, and wholesale margin bring the landing cost to N565.34. When retailers’ margins, dealers’ margins and transport costs are added, it brings the price in Lagos to N590.34.

The price could average around N600 – N650 when it is transported across Nigeria, calculations show.

Marketers are already scampering to guarantee supply due to lower inventories and NNPC’s insistence that they must take products at the new rate.

Mike Osatuyi, national operations controller, IPMAN, told BusinessDay that an increase in ex-depot prices will eventually force marketers to raise prices.

“If you want to order now for a truck, you will have like N21.8 million, we are going to increase it more than N500 because if I buy at N480/N495, what price will I sell?” he said.

The new foreign exchange policy could force an upward review of these prices.

The NNPC Limited has been directed to end crude swaps and buy refined crude oil products at market rates. This opens the market to other importers but only those with access to foreign exchange would thrive.

Nigerians who are already bearing the toil of increased fuel and food prices may see costs go even higher.

The major components that constitute petrol landing cost in Nigeria include product cost, traders and insurance margin, shipping, charges by government agencies, financing and banking charges and storage charges. Some of these are charged in dollars and some experts are calling for a review to reduce petrol costs.

“We must resist the dollarisation of the Nigerian economy,” human rights lawyer, Femi Falana said during the recent strike action called by labour.

https://businessday.ng/news/article/naira-float-may-force-nnpcl-to-review-petrol-prices/

It will definitely increase the price of Petrol, interesting times ahead

Tinubu Fanboys don’t buy pms, they just stay in a house and continue to push lies and misinformation into the public space

Everybody go hear am

We will all learn in a hard way, both the hailers & wailers will fill it big time, me by God grace I will still buy I have already pegged my mine 11k as fuel top-up (21) liters

Godszilla:
...Pump prices could reach N650 outside Lagos

The removal of the peg on the naira thus allowing for a free float will force a review of the assumptions that led to the pump price of petrol at N488 per litre in Lagos, industry operators say.

Nigeria’s state-owned oil company, the Nigerian National Petroleum Company Limited (NNPCL) last month issued price guidance for its over 900 retail petrol stations and other marketers promptly adopted it.

These assumptions would however change as Naira rates converge with the parallel market rate which currently trades above N750/$1.

BusinessDay had earlier reported that the eventual exchange rate would determine petrol prices at the pump as Nigeria’s lack of refining capacity means it imports all the petroleum products it uses locally.

At the current petrol pricing template, the pump price of petroleum products will sell above N590 in Lagos. If the rate converges at N750 as some bankers tell BusinessDay, petrol prices will surge leaving the most efficient operator with relatively cheaper prices.

An analysis of the pricing template shows that product cost at N503.91 per litre and other costs including trader’s margin, freight, NPA port charges, NIMASA, financing costs, jetty storage, and wholesale margin bring the landing cost to N565.34. When retailers’ margins, dealers’ margins and transport costs are added, it brings the price in Lagos to N590.34.

The price could average around N600 – N650 when it is transported across Nigeria, calculations show.

Marketers are already scampering to guarantee supply due to lower inventories and NNPC’s insistence that they must take products at the new rate.

Mike Osatuyi, national operations controller, IPMAN, told BusinessDay that an increase in ex-depot prices will eventually force marketers to raise prices.

“If you want to order now for a truck, you will have like N21.8 million, we are going to increase it more than N500 because if I buy at N480/N495, what price will I sell?” he said.

The new foreign exchange policy could force an upward review of these prices.

The NNPC Limited has been directed to end crude swaps and buy refined crude oil products at market rates. This opens the market to other importers but only those with access to foreign exchange would thrive.

Nigerians who are already bearing the toil of increased fuel and food prices may see costs go even higher.

The major components that constitute petrol landing cost in Nigeria include product cost, traders and insurance margin, shipping, charges by government agencies, financing and banking charges and storage charges. Some of these are charged in dollars and some experts are calling for a review to reduce petrol costs.

“We must resist the dollarisation of the Nigerian economy,” human rights lawyer, Femi Falana said during the recent strike action called by labour.

https://businessday.ng/news/article/naira-float-may-force-nnpcl-to-review-petrol-prices/

Nothing go happen, but let's wait till December.

So it is propaganda that tinubu intends to use in running his stolen government. We will see ourselves after like 3 years.

Nawaoooo, where are we going on this nation gan

Godszilla:
...Pump prices could reach N650 outside Lagos

The removal of the peg on the naira thus allowing for a free float will force a review of the assumptions that led to the pump price of petrol at N488 per litre in Lagos, industry operators say.

Nigeria’s state-owned oil company, the Nigerian National Petroleum Company Limited (NNPCL) last month issued price guidance for its over 900 retail petrol stations and other marketers promptly adopted it.

These assumptions would however change as Naira rates converge with the parallel market rate which currently trades above N750/$1.

BusinessDay had earlier reported that the eventual exchange rate would determine petrol prices at the pump as Nigeria’s lack of refining capacity means it imports all the petroleum products it uses locally.

At the current petrol pricing template, the pump price of petroleum products will sell above N590 in Lagos. If the rate converges at N750 as some bankers tell BusinessDay, petrol prices will surge leaving the most efficient operator with relatively cheaper prices.

An analysis of the pricing template shows that product cost at N503.91 per litre and other costs including trader’s margin, freight, NPA port charges, NIMASA, financing costs, jetty storage, and wholesale margin bring the landing cost to N565.34. When retailers’ margins, dealers’ margins and transport costs are added, it brings the price in Lagos to N590.34.

The price could average around N600 – N650 when it is transported across Nigeria, calculations show.

Marketers are already scampering to guarantee supply due to lower inventories and NNPC’s insistence that they must take products at the new rate.

Mike Osatuyi, national operations controller, IPMAN, told BusinessDay that an increase in ex-depot prices will eventually force marketers to raise prices.

“If you want to order now for a truck, you will have like N21.8 million, we are going to increase it more than N500 because if I buy at N480/N495, what price will I sell?” he said.

The new foreign exchange policy could force an upward review of these prices.

The NNPC Limited has been directed to end crude swaps and buy refined crude oil products at market rates. This opens the market to other importers but only those with access to foreign exchange would thrive.

Nigerians who are already bearing the toil of increased fuel and food prices may see costs go even higher.

The major components that constitute petrol landing cost in Nigeria include product cost, traders and insurance margin, shipping, charges by government agencies, financing and banking charges and storage charges. Some of these are charged in dollars and some experts are calling for a review to reduce petrol costs.

“We must resist the dollarisation of the Nigerian economy,” human rights lawyer, Femi Falana said during the recent strike action called by labour.

https://businessday.ng/news/article/naira-float-may-force-nnpcl-to-review-petrol-prices/

Ok

I said it here if dollar stabilize at 650 it's impossible to get fuel below 750 ... It's simple

^^^
@mrvitalis
Don't mind these otondo speculators posing as intellectuals.

I estimated N780 going by the new rate of N664 a dollar. That's three times the subsidized prices a month ago.

Moferere:
Everybody go hear am

Honestly

By the time balabulu is done with Nigeria everybody go hear am

okosodo:
So it is propaganda that tinubu intends to use in running his stolen government. We will see ourselves after like 3 years.

The government Na propaganda government

Some of you are just brainless always capitalize on negative account. Are we still import fuel? Those bankers that giving fake analysis should come to national TV and let Nigerians ask questions. Nonsense.

mrvitalis:
I said it here if dollar stabilize at 650 it's impossible to get fuel below 750 ... It's simple

The effect of Tinubu's policy mistakes; floating the naira despite low forex liquidity and implenting subsidy removal without local refining capacity.

I hope these are not the after effects of the hysteria associated with substance abuse?

We need calm and level heads to make decisions in this country and not impulsive actions under the effects of highly addictive stimulants.

Brace up for the effect of Tinubu's policy mistakes; floating the naira despite low forex liquidity and implenting subsidy removal without local refining capacity.

I hope these are not the after effects of the hysteria associated with substance abuse?

We need calm and level heads to make decisions in this country and not impulsive actions under the effects of highly addictive stimulants.

Tinubu despite this good intentions will run his own govt aground

Resurrection212:
Some of you are just brainless always capitalize on negative account. Are we still import fuel? Those bankers that giving fake analysis should come to national TV and let Nigerians ask questions. Nonsense.

Lmao yes we still import petrol diesel, kerosene, aviation fuel and gas... U have evidence we don't?

CodeTemplar:
^^^
@mrvitalis
Don't mind these otondo speculators posing as intellectuals.

I estimated N780 going by the new rate of N664 a dollar. That's three times the subsidized prices a month ago.

I am tired of this clowns... One just said we don't import petrol ooh

Tinubu is still running his government with propaganda and initial gra gra!

I don't blame him. Buhari lower the bar of leadership in Nigeria with his incompetency and because of that anything Tinubu did is now an achievement.

Has sacking Emifele and Effc boss becames an achievement ? But Tinubu supporters are celebrating it as achievement.

By one year time, their eye go clear.

I still believe the new pump price was arrived at using the parallel market rate and not the official rate. So, we may not see any forex induced price increase.

mrvitalis:
I am tired of this clowns... One just said we don't import petrol ooh

The protein in agbado isn't easily digestible so may be high gas prices has led to malnutrition for some folks already. Leave those otondos.

seunmsg:
I still believe the new pump price was arrived at using the parallel market rate and not the official rate. So, we may not see any forex induced price increase.

Oga, dig Nairaland and read up those threads always warning of what fuel may sell for without subsidy. They contain information about the exchange window used to import NNPCL petrol.

Resurrection212:
Some of you are just brainless always capitalize on negative account. Are we still import fuel? Those bankers that giving fake analysis should come to national TV and let Nigerians ask questions. Nonsense.

Are you for real?

Please provide evidence that we are really still importing and that dangote refinery is completely useless.

mrvitalis:
Lmao yes we still import petrol diesel, kerosene, aviation fuel and gas... U have evidence we don't?

CodeTemplar:
Oga, dig Nairaland and read up those threads always warning of what fuel may sell for without subsidy. They contain information about the exchange window used to import NNPCL petrol.

I may be wrong but NNPCL never made public the template it used to arrive at N530. They just woke up a day after Tinubu’s inaugural speech and told us petrol is now N530. Have we interrogated the pricing template?

I remember NEC approved N350 as the realistic price of petrol without subsidy last year so how did we arrive at N530 when most of the variables haven’t changed significantly since then?

Resurrection212:
Please provide evidence that we are really still importing and that dangote refinery is completely useless.

Dangote refinery started productions? When?

Anything to make the fuel price N1, 000 per litre is welcome by me. The government officials have not reduced their ridiculous motorcades and wasteful privileges, but they are talking about fuel subsidy removal. Yet the useless poor masses are 'reasoning' with them.

The stupid masses need to be suffocated and crushed to death if possible, because that's what they deserve. Their complacency is disgusting.

Never seen a country filled with such docile idiots.

Those applauding Tinubu will be wondering what's going on 😂😂😂

Spot on

hedonido:
Anything to make the fuel price N1, 000 per litre is welcome by me. The government officials have not reduced their ridiculous motorcades and wasteful privileges, but they are talking about fuel subsidy removal. Yet the useless poor masses are 'reasoning' with them.

The stupid masses need to be suffocated and crushed to death if possible, because that's what they deserve. Their complacency is disgusting.

Never seen a country filled with such docile idiots.

seunmsg:
I still believe the new pump price was arrived at using the parallel market rate and not the official rate. So, we may not see any forex induced price increase.

Finally, one reasonable fellow.

Pigs... are something else