The price of diesel per litre will drop from the current N1,500 to less than N1,000 with the start of production at the Dangote Refinery, according to Bismark Rewane, Managing Director of Financial Derivatives Company Limited. During the week, Rewane was a guest on Channels Television’s News At 10, where he discussed the Central Bank of Nigeria’s (CBN) recent interest rate hike.
One important stocking factor is diesel.
In terms of retail, it costs N1,500. People are already purchasing diesel, which the Dangote refinery has already begun to sell. It will greatly contribute to lowering inflation if it stays around N1100 and moves in that direction.
You will witness improvements, starting with the bakers, who are using diesel to fund their furnaces and ovens. Therefore, this is wonderful news for bakers and cement makers.
Narrow weakening now discussing inflation. Here is when a sharp increase in the exchange rate resulted in a decline in inflation. The inflation exchange rate will decrease now that it is rising. However, as the economy is currently in, prices are sticking downward. It is anticipated that there will be a decrease in prices, but it will happen much more gradually than it did when they were at an all-time high. That pass-through makes up half of the inflation in headlines. $1 = N1,950 in February. The exchange rate dropped to 1,600 naira per dollar today following the MPC meeting in February. Currently at 1,320, it may shortly rise to 1,250.