Business Politics

Marketers eye N700/litre diesel after Dangote value reduce

The Independent Petroleum Marketers Association of Nigeria says it’s anticipating that the Dangote refinery will scale back the worth of its diesel additional to say about N700 per litre.

The National Vice President of IPMAN, Hammed Fashola, acknowledged this on Wednesday whereas appreciating the Dangote refinery for decreasing the worth of diesel from over N1,200 to N1,000.

Fashola, in an interview with our correspondent, maintained that the entrepreneurs have excessive expectations that the worth of diesel would  nonetheless go down.

According to him, the rebound of the naira in opposition to the greenback will result in an considerable discount within the diesel value.

“It is a good development, a welcome development. That is what we expected. Even we are still expecting that diesel will still come down more. Because if you look at the dollar rate to the naira now, the currency is doing well against the dollar. The exchange rate now is almost N1,000 on the black market. We still expect that the dollar will come down more,” he acknowledged

The IPMAN boss defined that the worth can be decreased as a result of the challenges of cargo, Customs duties and others have been eliminated for the reason that product is being produced regionally.

“When you look at the diesel being produced here, there are lots of factors that have come to play; like the issue of shipment, the issue of tax, Customs and others. All those are not there again. So, we marketers, we are expecting diesel to come to like N700 per litre; that is our prayer and at that level, it will be a blessing to everybody. That is what we are looking at. What we produce here must be quite different from what is imported. That is what we expected,” Fashola submitted.

He spoke additional that, “We all supported Dangote, all of us prayed for him. We respect that the worth is coming down, we nonetheless count on that the worth will come down extra and will probably be reasonably priced for residents.

Dangote started the sale of diesel about two weeks in the past, crashing the price of diesel from N1,600/litre to 1,250/litre.

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Last Tuesday, the refinery introduced one other value reduce, saying the gas would now be bought at N1,000/litre.

Analysts listing advantages

An economist, Femi Oladele, welcomed the worth reduce, saying, “This price cut is good news. Production cost should drop significantly and this should also affect the cost of products and services.”

Some companies that shut down on account of exorbitant prices may resurface whereas new companies will emerge.”

He additionally identified the potential financial savings in international change, which might bolster the nation’s reserves.

The economist expressed optimism concerning the future, predicting, “If this trajectory continues, we should see a significant increase in economic activities and a drop in inflation.”

Also, an analyst at Sankore Investment Limited, Jonathan Thomas, highlighted the affect of gas costs on the economic system.

“The price of fuel is one of the major determinants of the general price level of goods and services. Petroleum products such as diesel are being used by plants in factories for the production of goods and services. Diesel is also used by heavy vehicles for the transportation of goods and raw materials which are used for production. Therefore, the latest development is expected to impact the total cost of production,” he defined.



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