Economy
PETROAN Demands Cut in Petrol Prices as Crude Falls Below $80
By Adedapo Adesanya
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called for an immediate reduction in ex-depot and retail pump prices of petroleum products, as global oil prices dropped below $80 per barrel.
The association’s National President, Mr Billy Gillis-Harry, made the call in a statement signed by PETROAN’s National Public Relations Officer, Mr Joseph Obele.
According to Mr Gillis-Harry, the downward movement in international crude oil prices presents an opportunity for stakeholders in the downstream petroleum sector to pass on the benefits of lower crude costs to Nigerian consumers.
He stressed that prevailing market conditions should be reflected in both ex-depot and retail pump prices to ensure fairness and provide economic relief to Nigerians.
“The recent drop in global crude oil prices offers an opportunity for stakeholders in the downstream petroleum sector to pass the savings on lower crude costs to Nigerian consumers,” he said.
He added that “market realities should be reflected in both ex-depot and retail pump prices in the interest of fairness and economic relief for the public.”
The PETROAN president noted that Brent crude oil prices have fallen to about $77–$78 per barrel following the ceasefire agreement between the United States and Iran and expectations of a gradual normalisation of oil exports through the Strait of Hormuz.
He said market analysts currently project Brent crude to trade between $75 and $82 per barrel next week, while West Texas Intermediate (WTI) crude is expected to remain within the $72 to $79 per barrel range.
Mr Gillis-Harry attributed the decline in crude oil prices to the continued implementation of the U.S.-Iran peace agreement, increased crude exports from the Middle East and concerns over weaker global oil demand.
While acknowledging that fresh supply disruptions, a breakdown in peace negotiations or unexpected production cuts by the Organisation of Petroleum Exporting Countries (OPEC) and its allies could trigger price increases, he maintained that the current outlook for the oil market remains relatively stable to bearish.
The PETROAN president also expressed concern that the landing cost of imported petroleum products appears, in some cases, to be lower than the prices offered by domestic refiners.
“According to him, this development is surprising and underscores the need for a more competitive downstream petroleum market that guarantees consumers access to the most affordable products available,” the statement said.
To address the situation, Mr Gillis-Harry urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing import licences to qualified marketers.
He explained that “increased competition among suppliers would help moderate prices, discourage monopolistic tendencies, and ensure a steady supply of petroleum products across the country.”
The PETROAN president maintained that competition remains critical to achieving efficiency and consumer protection in the sector.
“Competition remains one of the most effective mechanisms for driving efficiency, reducing costs, and protecting consumers,” he said.
He added that a competitive market environment would encourage all market participants to review their prices downward in line with prevailing market realities.
PETROAN further called on the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mr Bayo Ojulari, to facilitate discussions with two Chinese firms that have expressed interest in operating the Port Harcourt and Warri refineries.
Mr Gillis-Harry said the successful revival and operation of the facilities under private-sector management could further drive down petroleum product prices.
“If these refineries are successfully revived and operated as private-sector-driven facilities, petroleum product prices are expected to decline further due to improved efficiency and increased domestic refining capacity,” he said.
He noted that the resumption of operations at the Port Harcourt and Warri refineries under competent private management would enhance supply stability, promote healthy competition and ultimately make petroleum products more affordable for Nigerians.
The PETROAN president added that sustained moderation in crude oil prices, combined with stable exchange rates and refining costs, should support lower petrol prices and provide relief to consumers and businesses grappling with economic challenges.
By Adedapo Adesanya
Dangote Petroleum Refinery has formally approached Nigeria’s Securities and Exchange Commission (SEC) to begin the regulatory process for its planned initial public offering (IPO), paving the way for what could become Africa’s largest stock market listing, according to a report by BusinessDay.
The newspaper reported that the refinery’s advisers are already working with company officials and the SEC to process the application, with the regulator expressing confidence that there are no obstacles likely to delay the transaction.
Speaking in an interview with BusinessDay, the Director-General of the SEC, Mr Emomotimi Agama, said the commission stands ready to address any issues that may arise during the approval process.
“If any issue arises, SEC will resolve it. That is why the SEC exists,” Mr Agama was quoted to have said.
Although no official listing date has been approved, the refinery is still targeting a September debut on the Nigerian Exchange (NGX) Limited. There are also plans for a multi-African bourse listing.
The planned IPO is expected to rank among the largest equity offerings ever seen in Africa and would mark one of the most significant additions to Nigeria’s capital market in recent years.
The listing also aligns with ongoing efforts by regulators to encourage major privately owned companies to go public and deepen the country’s equity market.
The application comes after several months of preparatory engagements involving Dangote Refinery, its advisers and the SEC.
Mr Agama noted that the company’s early engagement with the regulator has helped streamline the approval process, adding that the commission intends to encourage similar collaboration for future listings.
Meanwhile, the SEC has concluded investigations into the unauthorised promotion of the refinery’s proposed IPO by some market participants before regulatory approval had been obtained.
According to Mr Agama, sanctions are being imposed on those found to have breached the rules, although he declined to identify the affected entities.
This comes after the company raised about $2.5 billion has been raised by from its private equity placement.
The exercise attracted broad participation from international and African institutional investors, sovereign-related investment vehicles, development finance institutions, strategic partners, and individual investors.
Notable participants included the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank), reflecting deep and diversified confidence in DPRP’s long-term prospects.
The transaction is believed to be Africa’s largest publicly disclosed primary equity private placement, marking a significant milestone in the history of the organisation and demonstrating strong investor confidence in the refinery’s long-term growth strategy, including raising its current capacity from 700,000 barrels per day to 1.4 million barrels per day.
By Adedapo Adesanya
The trio of MRS Oil Plc, Central Securities Clearing System (CSCS) Plc, and Afriland Properties Plc lifted the NASD Over-the-Counter (OTC) Securities Exchange by 1.21 per cent on Wednesday, July 29.
MRS Oil made a N14.80 gain to close at N162.80 per share versus the previous session’s N148.00 per share, CSCS Plc appreciated by N5.09 to N95.00 per unit from N89.91 per unit, and Afriland Properties Plc improved by 73 Kobo to end at N20.63 per share, in contrast to Tuesday’s closing price of N19.90 per share.
As a result, the NASD Security Index (NSI) added 51.73 points to settle at 4,324.88 points compared with the preceding day’s 4,273.15 points, and the market capitalisation jumped by N31.03 billion to close at N2.595 trillion versus N2.564 trillion.
At the close of transactions, the volume of securities exchanged by the market participants fell by 96.8 per cent to 213,893 units from 6.7 million units, the value of securities declined by 82.7 per cent to N14.8 million from the preceding session’s N85.8 million, and the number of deals slumped by 13.7 per cent to 44 deals from the previous day’s 51 deals.
Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units traded for N6.5 billion, and CSCS Plc with 75.9 million units transacted for N5.4 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units exchanged for N415.7 million.
By Adedapo Adesanya
The Naira further depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) for the third straight day on Wednesday, July 29, by N1.18 or 0.09 per cent to quote at N1,366.71/$1 compared with the previous day’s N1,365.53/$1.
In the same vein, the Nigerian currency weakened against the Euro in the official FX market at midweek by N2.44 to close at N1,555.32/€1, in contrast to Tuesday’s rate of N1,552.88/€1, but against the Pound Sterling, it appreciated by N2.38 to trade at N1,815.82/£1 versus the previous day’s N1,816.43/£1.
At the black market, the Naira traded flat against the greenback yesterday at N1,400/$1, and also remained unchanged at the GTBank forex counter at N1,370/$1.
Interbank FX turnover closed at $61.034 million, according to data obtained from the Central Bank of Nigeria (CBN), about a 41 per cent day-on-day decline from $102.954 million the previous day.
The data also revealed that the number of deals at the interbank FX window eased to 86 from 121 previously recorded.
With a slowdown in FX inflows from foreign portfolio investors, exporters and non-bank corporates, the CBN is anticipated to step up its market intervention to keep the local currency stable.
Meanwhile, the cryptocurrency market turned red during the session, as the US Federal Reserve left its benchmark fed funds rate range unchanged at 3.50 per cent -3.75 per cent, extending its pause for a sixth consecutive meeting as policymakers continue to grapple with stubborn inflation.
“Inflation remains elevated relative to the committee’s 2 per cent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy,” the policy statement read.
Investors will be watching closely for signs that the US central bank’s communication strategy is changing under the leadership of Mr Kevin Warsh, who had been openly critical of the Federal Reserve’s traditional use of forward guidance and the quarterly dot plot, which the bank uses to show officials’ interest rate projections.
Dogecoin (DOGE) dropped 1.3 per cent to sell at $0.0699, Ripple (XRP) crashed by 1.2 per cent to $1.07, Ethereum (ETH) declined by 0.8 per cent to $1,902.73, Bitcoin (BTC) lost 0.6 per cent to finish at $63,977.25, Solana (SOL) went down by 0.4 per cent to $73.57, and Cardano (ADA) depreciated by 1.2 per cent to $0.1625.
On the flip side, Binance Coin (BNB) went up by 0.4 per cent to $572.53, and TRON (TRX) soared by 0.3 per cent to $0.3263, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
