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Independent Marketers Threaten to Stop Lifting Fuel This Week

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  • Independent Marketers Threaten to Stop Lifting Fuel This Week

The over 3, 000 fuel dealers in the South-West geopolitical zone of the country under the aegis of the Independent Petroleum Marketers Association of Nigeria have threatened to stop dispensing fuel in their various outlets this week.

It was learnt that many of the marketers had stopped dispensing fuel since last week when they exhausted their stock and refused to lift new product because they could no longer afford to run the business at a loss.

The IPMAN Chairman in the South-West, Mr. Debo Ahmed, lamented that private depot owners were selling the product at an exorbitant price.

He said, “The result of this is that about 90 per cent of our members who can no longer continue with the business, have already stopped lifting fuel while the remaining 10 per cent have threatened to also close down their stations if nothing was done to remedy the situation this (last) week.

“Unfortunately we cannot sell above the pump price of N145 per litre in the South-West if we don’t want to incur the wrath of the Department of Petroleum Resources. Our colleagues in the North, South-East and South-South are running their own businesses because they are selling above the pump price.”

Ahmed urged the Federal Government to fully deregulate the petroleum sector so that individuals could buy and sell the product at a price considerate enough to keep everyone in business.

Another executive of the association, who spoke on condition of anonymity, said his members bought fuel at N145 from private depots in Apapa, Ejigbo, and Oghara.

According to him, the non-availability of the product at depots owned by the Nigerian National Petroleum Corporation for some years has compounded the problem.

He said, “We decided not to cause panic by not openly announcing our intention to stop lifting fuel. The people will start feeling the effect as from Monday if the government fails to do anything about it. We have held series of meetings with the owners of private depots to reduce their price but they refused, claiming that it would affect their business too.

“I am still running some of my stations because I have my own trucks. I bought fuel at N143 per litre at a private depot in Apapa and would transport a litre with N6 to Akure and other towns. This means I am running at a loss because I have to sell at N145, being the official pump price. I am doing this just to keep the stations running. I usually load eight trucks. But I load just two now.”

The IPMAN Chairman, Ore Depot branch, Mr. Shina Amao, also confirmed the development and attributed the problem to the non-functional state of NNPC-owned depots where the product could be bought at N133.38k.

He said, “Government should, without further delay, resume the pumping of fuel to the NNPC-owned depots in Ore, Ibadan (Mosimi), Ejigbo and Warri so that we can buy at the official landing cost of N133.28k as against the N145 per litre at the private depots.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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