By using this site, you agree to the Privacy Policy and Terms & Conditions.
Accept
Okay.ngOkay.ngOkay.ng
Font ResizerAa
  • News
    • Politics
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Reading: New Petrol Price Based On N285 to the Dollar – Kachikwu
Share
Font ResizerAa
Okay.ngOkay.ng
  • News
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Search
  • News
    • Politics
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Follow US
  • About Okay.ng
  • Advertising on Okay.ng
  • Contact Okay.ng
  • Careers
  • Meet the Team behind Okay.ng
  • Ownership and Funding of Okay.ng
  • Editorial Principles at Okay.ng
© OKN MEDIA PUBLISHING 2022 - All rights reserved
News

New Petrol Price Based On N285 to the Dollar – Kachikwu

Farouk Mohammed
By Farouk Mohammed
Published: May 24, 2016
Share
3 Min Read
SHARE

ibe-kachukwu-1-1-1-1-1-1-1-2-2-1-1-1

Nigeria’s government has used a lower currency rate than its official central bank rate for petrol imports, the junior oil minister said on Monday, signalling what analysts believe could be a move towards a two-tier exchange rate regime.

Emmanuel Ibe Kachikwu said the government, which increased petrol prices in mid-May, used a conversion of 285 naira to the dollar to set prices, compared with the official rate of 197.

Retail petrol stations could therefore charge as much as 145 naira ($0.73) a litre, up from 86.5 naira before.

- Advertisement -

The increase has come at a time when Africa’s biggest economy is contracting due to lower world oil prices, amid rising domestic inflation and a pegged currency. The naira is trading at some 40 percent below its official rate.

The central bank is set to announce a decision on interest rate on Tuesday, with analysts predicting a hike to fight rising inflation and a devaluing naira over the next few months.

President Muhammadu Buhari has thus far rejected calls by the International Monetary Fund for a more flexible exchange rate.

“We think the exchange rate of 285/$1 used to arrive at the petrol price ceiling of 145/litre suggests a two-tier exchange rate may be a possibility,” Yvonne Mhango, economist at Renaissance Capital said.

- Advertisement -

Kachikwu said the government looked at 197 naira while determining the new petrol price but “moved away from that because it didn’t solve the problem”.

“I have told you about the 285 conversion as the foreign exchange rate, the only component that was changed on the (petrol price) template,” he told a briefing in Lagos.

Nigeria depends on imports for consumption of most goods including petroleum products, due to inadequate refining capacity. Last year the central bank curbed access to dollars for a range of goods to preserve dwindling foreign reserves, frustrating businesses and households.

In the two-tier forex market, a fixed rate of 197 could apply to essential imports, while luxury goods may be left to a managed float that trades around 250, analysts and business leaders have speculated.

Kachikwu said government-owned NNPC stations have capacity to sell petrol at 120 naira or below but it did not want to encourage private firms to divert products for profits.

Stay Updated on the Go with Our Latest News—Join Our WhatsApp Channel Now!
TAGGED:DollarKachikwuPetrol Price
Share This Article
Facebook Whatsapp Whatsapp Telegram Email Copy Link Print
ByFarouk Mohammed
Publisher
Follow:
Farouk Mohammed is a Head Editor at Okay Nigeria (Okay.ng). He has been publishing for 10 years and focused more on Local/World News on Okay.ng
Previous Article EFCC Declares Senator Iyiola Omisore Wanted Over N700m Fraud
Next Article Edo Approves Appointment of New Oba of Benin

Connect with Okay on Social

FacebookLike
XFollow
InstagramFollow
TelegramFollow

Dollar/Naira Rates

Dollar to Naira Rate

Okay.ng Logo
Buy Rate ₦1,560.00
Sell Rate ₦1,570.00

Updated: 1 day ago

Displayed rates are for informational purposes only and are subject to change.

Quick Converter

- Advertisement -
- Advertisement -
Ad imageAd image
- Advertisement -
Ad imageAd image

Recent Posts

Aminu Dantata to be Buried in Madinah After Saudi Approval
News
VIDEO: NDLEA Issues Strong Advisory to Travellers Against Carrying Unknown Bags
Crime Video
SERAP Demands Transparency from Nigeria’s Governors on Security Vote Spending
News
Security Situation Improving, CDS Urges Continued Support from Nigerians
News Security
David Mark to Lead Anti-Tinubu Coalition Under African Democratic Congress Platform
Politics Top stories
- Advertisement -
Ad imageAd image

You May Also Like

InternationalNews

FG to Plant 20 Billion Trees Next Rainy Season in National Reforestation Drive, Says VP Shettima

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 28, 2025
NewsTop stories

Federal Government to Overhaul Civil Servants’ Healthcare Policy Amid Rising Concerns

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 28, 2025
Sport

Paul Pogba Joins AS Monaco on Free Transfer After Doping Ban

Yusuf Abubakar
Yusuf Abubakar
June 28, 2025
Okay.ngOkay.ng
Follow US
© OKN MEDIA PUBLISHING 2025 - All rights reserved
  • About Okay.ng
  • Advertising on Okay.ng
  • Contact Okay.ng
  • Careers
  • Meet the Team behind Okay.ng
  • Ownership and Funding of Okay.ng
  • Editorial Principles at Okay.ng
adbanner
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?