Bismark Rewane, Managing Director of Financial Derivatives Company Limited, predicts a significant drop in diesel prices with the commencement of production at the Dangote Refinery.
Currently at N1,500 per litre, diesel is expected to fall below N1,000 as the refinery contributes to the market supply.
This reduction, discussed during Rewane’s appearance on Channels Television’s News At 10, is anticipated to positively impact various sectors such as baking and cement manufacturing, which heavily rely on diesel for operations.
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Additionally, the recent appreciation of the exchange rate is projected to further alleviate inflation, albeit at a slower pace due to the sticky nature of price adjustments.
Despite this, the gradual decline in prices is expected to make a notable contribution to reducing headline inflation, with the exchange rate potentially stabilizing at around 1,250 naira per dollar in the near future.
