See more as FG schedule meeting after Dangote ends petrol sales in naira

• The national authorities of Nigeria has formed a sheet to find a solution to the naira crude statement impasse
• The sheet followed the determination by the Dangote refinery to halt the merchantability of petroleum products successful naira
• This determination by Dangote past led to the summation of petrol prices astatine backstage depots crossed the country

Legit.ng writer Dave Ibemere has implicit a decennary of concern journalism acquisition with in-depth cognition of the Nigerian economy, stocks, and wide marketplace trends

The method sub-committee connected the naira-for-crude argumentation acceptable up by the Federal Ministry of Finance and the Federal Ministry of Petroleum Resources has scheduled a gathering connected Monday, March 22 to research viable solutions to the challenges of supplying products to the Dangote refinery.

The committee has mandated the Nigerian Upstream Petroleum Regulatory Commission (NMPDRA) to travel up with options that the sheet would reappraisal arsenic it struggles to revive the naira-for-crude deal.

Dangote refinery has decided to halt selling petrol successful naira Photo credit: Bloomberg/contributor
Source: UGC

Punch reports that the conflict to proviso crude lipid to Dangote is owed to NNPC's allocation of ample volumes of crude to its overseas creditors to settee the loans acquired by the firm.

This makes it hard to prolong the naira-for-crude woody betwixt NNPCL and the Dangote refinery.

In effect to the disruption, Dangote Refinery announced a impermanent suspension of petroleum income successful naira.

In a connection released connected X, Dangote Group said the determination is indispensable to debar a mismatch betwixt our income proceeds and our crude lipid acquisition obligations, which are presently denominated successful U.S. dollars.

Part of the connection reads:

"To date, our income of petroleum products successful Naira person exceeded the worth of Naira-denominated crude we person received. As a result, we indispensable temporarily set our income currency to align with our crude procurement currency.Our attraction has besides been drawn to reports connected the net claiming that we are stopping loading owed to an incidental of ticketing fraud. This is malicious falsehood. Our systems are robust and we person had nary fraud issues."

Despite, Dangote decision, determination is anticipation a solution can beryllium recovered and the naira for the crude lipid woody volition not beryllium wholly halted.

New petrol prices

The Dangote refinery's determination to retreat crude lipid income successful naira has created responses crossed the petroleum sector, with marketers present considering alternate sourcing options and preparing for imaginable marketplace volatility.

Already, Data showed petrol terms movements astatine loading depots connected Thursday showed that Parker depot accrued its loading terms to N875 per litre from N852 per litre sold earlier successful the day, BusinessDay reports.

Matrix Warri effected an summation of N22 from N852 to N875 per litre, and Zamson Depot accrued its terms from N853 to N875 per litre. Rainoil depot made the aforesaid terms alteration from N853 to N875 per litre portion Pinnacle Warri and Sobaz changed their prices to N875 per litre from N854 and N870, respectively.

Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), however, said that the marketers are acceptable to mitigate unforeseen disruptions.

Speaking besides Hammed Fashola of the Independent Petroleum Marketers Association of Nigeria (IPMAN), has urged the national government to uphold the naira-for-crude statement to stabilize petroleum prices.

Depots set petrol prices

Earlier, Legit.ng reported that lipid marketers are buying petroluem products astatine caller prices, which could pb to changes successful fuel prices astatine filling stations

The hike successful depot prices is attributed to the petroleum marketplace changes pursuing Dangote's determination to halt the merchantability of petrol successful the naira.

In caller weeks, petrol prices astatine filling stations person been beneath N1,000 and determination are worries it could alteration soon.

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Source: Legit.ng