- Fuel Price Speculated to Rise to N200 per Litre ThisYear
Due to the decline in Nigeria’s foreign reserves, and the Organisation of Petroleum Exporting Countries(OPEC) forecast, that the request for crude oil by the consuming nations will fall in 2001 among other factors , the naira has continued its free fall , crashing to N470 to the dollar.
It will be recalled that Nigeria’s foreign reserves lost $31.6 million at the weekend to close the week at $35.6 billion.
This is even as the nation has begun witnessed a rise in the pump price of petrol to between N168 to N170 per litre by the Federal Government , making it the second hike in three months with speculations by economy analysts that the price of the product may hit N2oo per litre before January , 2021.
At the parallel market, rates opened at N464/$1 and closed at the weekend at N470.00/$1, depreciating by N6.00 kobo.
The Central Bank of Nigeria (CBN) data showed that spot rate or official exchange rate traded flat all week to close at N379/$1.
At the equities market, market capitalisation advanced by N2.1 trillion to N18.3 trillion within the week, while year-to-date return surged to 30.5 per cent.
Maintaining a steady rise since the federal government opted for full deregulation of the downstream segment of the petroleum industry earlier this year, the price of PMS has risen from about N121 in June to N170 this month.
It will be recalled that a Petroleum Pricing Marketing Company (PPMC) circular dated November 11 informed petrol marketers of the changes in wholesale price, otherwise called ex-depot price. The letter, with reference number PPMC/C/MKT/003 and signed by Ali Tijani, was approved by the management on November 12.