Nigerians to face higher transport, food costs as fuel prices increases again

• The FG's nonaccomplishment to renew the Crude for Naira woody betwixt NNPC and Dangote Refinery has led to rising petrol prices
• PETROAN has warned that this volition summation transport fares and the outgo of goods, arsenic galore substance marketers conflict with precocious FX rates
• Its president, Billy Gillis-Harry, disclosed that PETROAN is negotiating with overseas companies to unafraid amended petrol proviso terms

Legit.ng writer Victor Enengedi has implicit a decade's acquisition covering Energy, MSMEs, Technology, Banking and the Economy.

The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, has warned that higher petrol prices volition pb to accrued transport fares and rising costs of goods and services.

He explained that galore substance marketers are already struggling with precocious overseas speech rates and organisation costs, making substance proviso hard successful immoderate areas.

The PETROAN president said that the rising prices of petrol would impact the transport fares, on with the outgo of different commodities successful the markets. Photo recognition - Tolu Owoeye
Source: Getty Images

Collapse of FG's Naira-for-crude deal

The national authorities did not renew the crude-for-naira woody betwixt NNPC Limited and Dangote Refinery, starring to a imaginable summation successful petrol prices crossed Nigeria starting successful April.

The agreement, which lasted six months and ended successful March, allowed NNPC to proviso crude lipid to Dangote Refinery, with payments made successful naira.

This statement helped lower petrol prices from implicit N1,000 per litre to astir N820, depending connected location.

However, since the statement was not renewed, Dangote Refinery recently announced it would halt selling petrol successful naira to the section market. As a result, substance prices are rising.

Reports amusement petrol present costs up to N960 per litre successful immoderate areas, with backstage depots increasing their prices to N900 per litre.

These changes, driven by higher planetary crude lipid prices, person affected large cities, with Lagos having the lowest rates and bluish states experiencing the highest increases.

PETROAN predicts costlier proscription and goods

Gillis-Harry noted that the existent marketplace concern is affecting businesses successful the sector. While immoderate marketers can spend to bargain substance successful dollars, others cannot, which could marque it harder to guarantee a dependable proviso of petrol crossed the country.

He said that rising petrol prices would summation transport fares and the outgo of different goods successful the market.

He said:

"There is nary uncertainty that the upward accommodation of petrol prices would interaction connected transport fares, food, covering and different basal necessities. We request to beryllium cautious due to the fact that petrol is not similar different commodities. It is an important root of vigor and applicable to each sectors of the economy."

Gillis-Harry emphasized that petrol should beryllium consistently disposable crossed the country. This requires refiners to nutrient capable fuel, depot owners to store ample quantities, and marketers to person capable organisation outlets.

He stated that PETROAN members, who run implicit 7,000 retail outlets, privation a much unchangeable market. He stressed that expanding prices present is not ideal, particularly arsenic immoderate marketers are already buying substance successful dollars.

Gillis-Harry urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to amended its oversight, ensuring just information for each stakeholders. He called for due engagement to forestall immoderate azygous radical from dominating the market.

He besides revealed that PETROAN is successful talks with overseas companies to root petrol connected amended terms, allowing its members to bargain without relying solely connected dollar payments.

FG meets with Dangote implicit naira-for-crude deal

Earlier, Legit.ng reported that the national authorities precocious held a meeting to find solutions to the challenges of supplying crude lipid to Dangote Refinery.

The committee directed the Nigerian Upstream Petroleum Regulatory Commission (NMPDRA)to contiguous imaginable options for reappraisal arsenic efforts proceed to revive the Naira-for-Crude agreement.

Sources acquainted with the contented accidental the main situation successful NNPC’s crude proviso to Dangote Refinery is that a information of the crude lipid is already allocated to overseas creditors.

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Source: Legit.ng