…FX Challenge Driving Petrol Price Towards N581 Per Litre – experts
Below are the prevailing Black market (Parallel market) also locally known as ‘Aboki FX’ exchange rates for today Tuesday 27th June 2023 for the Dollar, Euro, Pounds and other foreign currencies.
Following the new policy of the Central Bank of Nigeria under President Bola Ahmed Tinubu, to float the exchange rate of the Naira against the united states’ dollar and other foreign currencies, IgbereTV will be bringing you updates as observed in the parallel market.
It is important to note that the rates you buy or sell forex may differ from what is captured in this report because prices fluctuate and can change in minutes depending on market forces
Below are the average prices observed in the forex black market also known as Aboki FX’ in Lagos, Abuja and Kano Today Tuesday June 27, 2023.
Dollar to Naira (USDNGN) Today
Buying N778
Selling N768
Euro to Naira (EURNGN) Today
Buying N 840
Selling N 825
Pounds to Naira (GBPNGN) Today
Buying N1000
Selling N970
CAD to Naira (CADNGN) Today
Buying N630
Selling N610
With the current prevailing rate, how much is $5 converted to Naira? N3,840
With the current prevailing rate, how much is $10 converted to Naira? N7,680
Meanwhile, following the floating of the Naira by the Central Bank of Nigeria, there are strong indications on Monday that the nationwide average price of premium motor Spirit (PMS) will rise further as marketers benchmark costs against rising exchange rates, IgbereTV has learned.
Marketers who spoke to Vanguard on Monday in Lagos, against the backdrop of continued depreciation of the naira, said the implication would be that their cost has also increased beyond the figure used in fixing current pump prices.
IgbereTV understands that the current national average pump price of N500 per litre was arrived at with an exchange rate of N661/$.
Already, findings by the Vanguard have indicated that most major oil marketers have adjusted their prices to N492-495 in Lagos, contrary to the N488 earlier positions floated by the industry shortly after the removal of subsidy was announced by President Bola Tinubu on May 29, 2023.
Also in Lagos, most independent marketers have adjusted further to an average of N515, while outside Lagos the pump price has jumped to over N650.
The marketers said that with the closing rate at the Investors and Exporters, I&E, foreign exchange window since last week at about N770/$ the pump price is likely to hit N550 per litre by early next month.
Marketers begin importation
This comes as the marketers begin the process of importing the product under the new market regime.
But checks by Vanguard, yesterday, showed that as a result of the changes occasioned by forex, oil marketers are still finding the business environment very uncertain to raise funds for the importation of the product.
It showed that although a few oil marketers have started negotiating with the banks, such engagements were being scuttled by the current instability in the business environment.
But the oil marketers said they have not given up as efforts will be intensified to import commercial quantities of petrol.
The first deliveries of 11 Plc, Ardova, and others are to arrive in mid-July
Commenting on the development, yesterday, the Chief Executive Officer, of Ardova Plc, who doubles as Chairman of MOMAN, Mr Olumide Adeosun, said: “It takes a little bit of time to arrange the forex, which still is not optimal at present.
“Then the logistics, availability of suitable vessels and other issues also affect operations. All the same, we expect to see some inflows from non-NNPC Limited sources in July 2023.’’
Also, commenting on prices, he said: “Prices may go up before they come down in any event.”
The Managing Director/CEO of 11 Plc, Adetunji Oyebanji, who was also a former chairman of MOMAN, confirmed planned moves by his company to import the product, stressing “it is likely to be towards the middle of July 2023.”
IgbereTV understands that this means that major and independent oil marketers will still depend on NNPC Limited to bring in the product from the global market in at least the next month.
We have not started to import — IPMAN
Like major marketers, the National Operations Controller of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Mike Osatuyi, who confirmed that members had not started importation, said: “We now need more funds to put into the business than before. Remember, the exchange rate of the naira has also increased from over N400/ a dollar to over N700/per dollar.
“We are currently discussing with the banks. It will take some time to conclude the various discussions before securing funds for the importation.”
No fixed price at depots — DAPPMAN
Meanwhile, IgbereTV understands yesterday that the ex-depot price of petrol has risen tremendously in the past few weeks.
Specifically, it indicated that from over N400 per litre, the ex-depot price of petrol has by yesterday, risen to N515 per litre, thus causing the pump price to rise further to over N500 per litre, from N488 in Lagos and environs.
In a telephone interview with Vanguard, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Olufemi Adewole, said the depot owners were not compelled to maintain a particular price.
He said: “There is no uniform ex-depot price; each marketer, based on its individual market fundamentals, determines its own ex-depot price and any inefficient marketer loses customers because they’ll move to the cheaper, more efficient marketer.”
Sharp practices
It was also learned that some oil marketers have cashed in on the instability in downstream to make brisk businesses, including pump manipulation and diversion to generate maximum profit.
The Chief Executive, of Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Farouk Ahmed did not respond when Vanguard reached out to him yesterday.
But the agency recently said it had issued licenses to six companies to commence fuel importation into the nation.
Although the agency refused to make known the identity of the companies, it was gathered that Eterna Oil Plc, Emadeb and Asharami Energy are among the six granted licenses.
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