Dangote Refinery Would Make The Prices Of Food Stuff Reduce – CBN
This was said by CBN Governor Olayemi Cardoso during a press conference on Tuesday following the 297th Monetary Policy Committee (MPC) meeting in Abuja.
“The committee expressed hope that the removal of refined petroleum products from Dangote Refinery will significantly support the short- to medium-term alleviation of pressure on food prices by reducing transportation costs.”
“This is anticipated to alleviate the need for foreign exchange to import refined petroleum products, resulting in a favorable impact on the external reserve and an enhancement of the overall balance of payment situation,” stated Cardoso.
A further increase in the Monetary Policy Rate (MPR), which tracks interest rates, by 50 basis points, from 26.75% to 27.25%, was also announced by the head of the CBN.
The National Bureau of Statistics (NBS) just released the Consumer Price Index data, which shows that in August 2024, the headline inflation rate decreased to 32.15% while food inflation remained at 37.52%.
According to the NBS, the annual rate of food inflation in August 2024 was 37.52%, representing an increase of 8.18% points when compared to the rate of 29.34%) in the same month the previous year.
According to the report, price rises for bread, maize, grains, guinea corn, bread, cereals, yam, Irish potatoes, water yam, cassava tuber, palm oil, and vegetable oil are among the factors contributing to the rise in food inflation year over year.
“The upside risk on food inflation is still flooding, rising energy prices, and food scarcity,” Cardoso stated.
“With food holding a significant position in the consumer price index (CPI) basket, which gauges inflation, members of the MPC acknowledge the Federal Government’s efforts to alleviate insecurity in the farming community and emphasize the importance of perseverance.
“The MPC also praised the Federal Government of Nigeria’s continuous efforts to close the supply gap by allowing duty-free import windows for food commodities.
Midway through September, the Nigerian National Petroleum Company Limited (NNPCL) started loading the first batch of gasoline from the Dangote Refinery.
According to NPCL, it purchased gasoline from the private refinery for N898 a litre.
NNPCL retail stores in Lagos sell gasoline for about N855 before removing it from the Dangote Refinery; nevertheless, they claimed that a liter of Dangote gasoline would sell for N950 in Lagos and N1,019 in Borno.
Dangote Refinery, however, rejected providing NNPCL with gasoline at N898. NNPCL said that it purchased gasoline from Dangote Refinery for N898 per litre and demanded that the refinery disclose the price at which it sold gasoline.
The NNPCL also disclosed a breakdown of the prices at which Dangote gasoline will be sold at its filling stations around the nation.
In the meantime, the NNPCL is selling gasoline that was lifted from the Dangote Refinery at a higher price than imported fuel, according to the Independent Petroleum Marketers Association of Nigeria (IPMAN).
References and Citation
channelstv.com – Dangote Petrol Will Ease Transport Costs, Food Prices – CBN
businesstodayng.com – Dangote Petrol Will Ease Transport Costs, Food Prices – CBN
tori.ng – Dangote Petrol Will Ease Transport Costs, Food Prices – CBN
nairametrics.com – Lifting of refined petroleum from Dangote Refinery expected to cut transport costs, curb inflation – CBN
