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Petrol Landing Cost Rises To N180, As Oil Crosses $60 In Global Markets

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The landing cost of Premium Motor Spirit (petrol) imported into the country has risen by 13.34 per cent in one month to about N180 per litre on the back of the increase in global oil prices.

Crude oil price accounts for a large chunk of the final cost of petrol, and the deregulation of petrol price by the Federal Government last year means that the pump price of the product will reflect changes in the international oil market.

Going by the petrol pricing template of the Petroleum Products Pricing Regulatory Agency, the landing cost of petrol rose to N179.67 per litre last Friday from N158.53 per litre on January 7, with the expected open market price (pump price) of the product increasing to N202.67 per litre from N181.53 per litre.

The rising price of crude oil pushed the cost of petrol quoted on Platts to $543.25 per metric tonne (N157.99 per litre, using N390/$1) last Friday from $480.25 per MT (N139.67 per litre) on January 7.

The international oil benchmark, Brent crude, rose to $59.34 per barrel on Friday from $53.70 per barrel on January 7.

Apart from the changes in global crude oil prices, the exchange rate of naira to the dollar also affect the cost of imported petrol.

The devaluation of the naira last year contributed to the significant rise in the landing cost of petrol.

The PPPRA used an exchange rate of N306.90/$1 on January 14, 2020, to calculate the cost of petrol, while N387.63/$1 was used on July 31.

The naira closed at 398.50 against the dollar on Monday at the Investors’ and Exporters’ Foreign Exchange Window, and 480/$1 at the parallel market.

The Central Bank of Nigeria has kept the official exchange rate at N379/$1 since August when it devalued the naira for the second time in 2020 from N360 per dollar.

Other cost elements that make up the landing cost include freight (N8.74), lightering expenses (N4.57), insurance cost (N0.24), Nigerian Ports Authority charge (N2.38), Nigerian Maritime Administration and Safety Agency charge (N0.23), jetty throughput charge (N1.61), storage charge (N2.58), and financing (N1.33).

The freight cost increased to $30.04 per MT (N8.74 per litre) last Friday from $20.47 per MT (N5.95 per litre) on January 7.

The pump price is the sum of the landing cost, wholesale margin and the distribution margins. The wholesale margin is N4.03 while the distribution margins comprise transporters allowance (N3.89), retailer (N6.19), bridging fund (N7.51), marine transport average (N0.15), and admin charge (N1.23).

The Federal Government announced last week the commencement of discussions with representatives of the labour movement on how to raise the freight rate from N7.51 per litre to N9.11 per litre.

Private oil marketing companies have continued to lament that their inability to access foreign exchange at the official rates has hampered efforts to resume petrol importation.

“The forex problem is real; it is only full deregulation that will allow access to forex. If you look at the prices of diesel and Aviation Turbine Kerosene; those are reflective of the price at which the market is accessing forex,” the Executive Secretary/Chief Executive Officer, Major Oil Marketers Association of Nigeria, Mr Clement Isong, said.

The Nigerian National Petroleum Corporation, which has been the sole importer of petrol into the country in recent years, is still being relied upon by marketers for the supply of the product despite the deregulation of the downstream petroleum sector.

Brent crude extended its rebound on Monday, hitting the $60 per barrel mark for the first since the extent of the COVID-19 pandemic became clear.

The further rise in oil prices comes amid optimism for a vaccine-led economic recovery and a commitment by the Organisation of the Petroleum Exporting Countries and its allies to restrain the supply of crude oil.

Brent, against which Nigeria’s oil is priced, increased by $1.23 to $60.57 per barrel as of 7:03 pm Nigerian time on Monday, its highest level since January 23, 2020.

BIG STORY

Gusau Airport Passes ICAO Quality Inspections ahead of Commercial Operations

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The Gusau International Airport (GIA) in Zamfara State has passed the International Civil Aviation Organisation’s (ICAO) quality assurance tests and inspections ahead of the commencement of commercial operations next month.

The development comes as the airport prepares to begin scheduled commercial flights between Gusau and the Nnamdi Azikiwe International Airport in Abuja.

According to a statement by the state government on Tuesday, XEJet Limited is expected to operate bi-weekly flights on Mondays and Fridays from the first week of October.

An official of a leading Nigerian aviation agency said the airport’s instrument flight procedures had undergone ICAO’s 17-step quality assurance and approval process, with GIA completing and passing all the stages.

The official, who spoke on condition of anonymity because he was not authorised to speak, said the process was part of Nigeria’s efforts to implement corrective measures recommended by ICAO.

ICAO is a specialised agency of the United Nations responsible for coordinating international air navigation standards and promoting the safe and orderly development of international air transport.

Nigeria’s civil aviation system recorded an effective implementation (EI) score of 75 percent after an ICAO audit in 2023.

The official said ICAO conducted a follow-up inspection, known as the ICAO coordinated validation mission (ICVM), in April 2026, during which Nigeria had a significant safety concern (SSC).

He said the concern was resolved within the prescribed 40-day period, although Nigeria was required to implement associated medium-term corrective action plans.

As part of the corrective measures, the instrument flight procedures at several Nigerian airports were subjected to ICAO’s 17-step quality assurance and approval process.

“Of all the airports assessed, only Gusau International Airport (GIA) completed and passed all the 17 steps,” the senior aviation official said.

“The evidence of GIA’s successful completion of this demanding process formed part of the documentation submitted to ICAO.

“Following the ICVM, Nigeria achieved an impressive EI score of 95.1%.”

On September 21, the Zamfara government signed an air route development partnership agreement with XEJet for scheduled commercial flights between Gusau and Abuja.

The agreement is expected to enhance access to Zamfara and open greater opportunities for investors, businesses, and visitors.

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BIG STORY

JUST IN: Tinubu Arrives Lagos after France Working Vacation

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President Bola Tinubu has arrived in Lagos after ending his working vacation in France.

The President arrived at the presidential wing of the Murtala Muhammed International Airport, Ikeja, on Tuesday, where Lagos State Governor Babajide Sanwo-Olu and other dignitaries were on hand to receive him.

The President’s arrival was confirmed by the Special Assistant to the President on Social Media, Olusegun Dada, who posted on X, “Landing. Welcome home, Mr President!”

Tinubu had departed Abuja on August 30 for the working vacation, spending one week in London before travelling to Paris.

According to a statement issued on Tuesday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu departed Paris for Lagos, where he is expected to hold strategic meetings with political leaders and associates.

“While in Lagos, President Tinubu will also hold strategic meetings with political leaders and associates over several days in preparation for the 2027 elections,” the statement read.

The Presidency said Tinubu chose to travel to Lagos first to honour the memory of the late Chief MKO Abiola, winner of the June 1993 presidential election and a prominent figure in Nigeria’s democratic struggle.

On October 1, Independence Day, the President is expected to attend the premiere of a movie honouring Abiola at the Wole Soyinka National Theatre, Iganmu, Lagos.

Tinubu’s working vacation also included a private dinner with French President Emmanuel Macron in Paris.

Details later…

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BIG STORY

US Hails Nigeria’s Response to Militia Attacks, Seeks Protection for Plateau Communities

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The United States has commended Nigeria’s response to recent attacks in the Middle Belt.

The US Department of State’s Bureau of African Affairs, in an X post on Tuesday, also urged the federal government to sustain efforts to protect communities in Barkin Ladi LGA of Plateau State.

“The United States commends Nigeria’s strong response to the latest attacks from Fulani militant groups,” the bureau said.

“We will continue to work with the Nigerian government to protect Christians in the Middle Belt.

“We urge Nigeria to continue the momentum and defend the Barkin Ladi communities in particular.”

Nigeria’s Middle Belt, particularly the north-central region comprising Benue, Kogi, Kwara, Niger, Plateau, among others, has witnessed varying levels of armed attacks, kidnapping, communal violence and farmer-herder conflicts in recent months.

The US comment comes amid renewed insecurity in parts of the country, particularly among communities in Barkin Ladi, where a series of attacks and reprisals have been reported in recent months.

On September 27, six people were killed and two others injured after gunmen attacked a mining site in Lajam Marit village, Ropp district, Barkin Ladi.

The victims were reportedly shot dead at the site, while the two injured persons were taken to the hospital for treatment.

Five days earlier, the Plateau government imposed a dusk-to-dawn curfew on Barkin Ladi, Bokkos and Mangu LGAs following a series of attacks, attempted attacks and reprisals. Residents were ordered to remain indoors between 6 pm and 6 am until further notice.

The curfew followed an incident in which a resident, Andy Samuel, a priest, was reportedly shot dead at Marit Junction, while another person sustained injuries.

Troops later came under attack after leaving the hospital, with the assailants suspected of carrying out retaliatory strikes following earlier violence in parts of Barkin Ladi.

On September 20, at least five Fulani men were reportedly killed after suspected Berom militias attacked their vehicle in Barkin Ladi.

The victims were travelling to a market in Jos South when their vehicle came under attack near a security checkpoint. The assailants reportedly opened fire, killing all five occupants.

On September 10, two people were killed after suspected armed militia attacked Fulani herders along the Jong-Nyeriwei road and in Dorowa Babuje community, also in Barkin Ladi.

One of the victims was identified as 19-year-old Ishaku Yakubu, while another man, identified as Andata, was reportedly shot dead around Marit Junction in Dorowa Babuje. Several cattle were also reportedly rustled during the attacks.

The attacks have heightened security concerns in Barkin Ladi and other parts of Plateau, with authorities deploying troops and imposing restrictions in some affected areas to prevent further violence and reprisals.

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