Inflation increases to 9.2%, Fuel Crisis takes toll on Food Prices......

Nigeria’s inflation advanced 0.2 percentage points to 9.2 percent in June, the highest level in over 24 months, as irregularity in fuel supply across the country continued to weigh on local consumer prices, according to the National Bureau of Statistics (NBS).

The NBS in a new report said fuel sold at N112.13 per litre on the average across the country in June, much higher than the N87 official price.

The Nigerian government last year cut fuel pump price to N87 per litre to reflect reduced landing costs of petroleum products, but figures from the NBS show that none of the 36 states, including the Federal Capital Territory sells the product at that rate.

 

In June, average pump price of fuel was costliest in Bayelsa at N155 per litre, followed by Niger at N138.33 and then Kogi at N128.33. The product sold the cheapest in Zamfara at N93, followed by Edo at N94.45. In Lagos, the nation’s commercial centre, fuel sold N102.63 per litre last month.

Prolong Fuel Scarcity’ caused as ‘Banks Responsible

NIGERIA- The non-cooperation of banks on the account of the debts they are owed by oil marketing companies will prolong the current fuel scarcity. This is in spite of assurances given to the marketers by the Federal Government that it would settled the outstanding payment.

 

This is even as the Petroleum Product and Pricing Regulatory Agency (PPPRA) is alleged to have reduced both the volume and number of marketers it has given licences for fuel importation, for the third quarter of the year.

Raise in Tomato Prices due to Delayed Rains, Poor Irrigation, Fuel Scarcity

NIGERIA - Tomato fruit prices are skyrocketing across the country on account of delayed seasonal rains, inadequate off-season irrigation planning, a rising and ebbing fuel scarcity , and roads in disrepair.

Consumers  have thus turned to buying up stocks of  canned tomato puree, causing highier than expected sales in that segment. External economies are however benefiting most from this development, as most canned tomato products are imported.

Tomatoes constitute 18 percent of all vegetables consumed by the Nigerian populace, according to a research  by the Agricultural Economics department of the University of Ibadan.

Early in 2014, Sanusi Lamido Sanusi, then governor of the Central Bank of Nigeria (CBN), expressed concern about Nigeria’s N16 billion  annual import bill on tomato pastes. This, he said, was due to very high demand for tomatoes in the country, which unfortunately, the farmers could not provide because of poor storage methods. 

This year’s price increase has reached an unusual high of N30,000 for a 50kg basket of tomatoes at the Mile 12 market – a major farm produce hub in Lagos.

Fuel: Depot owners, NUPENG see worsening Supply Ahead

The National Union of Petroleum and Natural Gas Workers (NUPENG) said on Monday that the prevailing fuel scarcity may worsen if depot owners continue to shut their reservoirs to tanker drivers willing to lift products for distribution across the country.

 

But depot owners have risen in defence of themselves, saying they have no products and therefore “cannot give what we don’t have”.

Oil projects above $17 per barrel not sustainable, says NNPC

New and existing oil projects that exceed $17 per barrel are not sustainable at the current average crude oil price of about $50 per barrel, says the Nigerian National Petroleum Corporation (NNPC).

 

Speaking at the 2015 Oloibiri lecture series and energy forum (OLEF), Timothy Okon, group coordinator, corporate planning & strategy, NNPC, said that beyond 33 percent cost-price ratio, the industry will suffer, adding that low cost-price ratio must be adhered to so that operators can make profit and pay government entitlements and taxes.