” Economies around the world (Nigeria inclusive) would witness a surge in the price of petrol, diesel, jet fuel, gas and related products in the near term.”
Dr Muda Yusuf, the Director/Chief Executive Officer Centre for the Promotion of Private Enterprise [CPPE], says that the outbreak of war between Israel and Iran , if it persist, is beneficial for the Nigerian economy, especially the oil and gas industry.
Dr Yusuf noted in a press statement on Sunday : ” A major driver of energy prices in Nigeria is the global crude oil price. With the outbreak of the Israeli-Iranian war, crude oil prices had surged to $75 per barrel from $65 per barrel a week before. This is a 15% jump within days.
This has obvious implications for petroleum product prices globally. Economies around the world [Nigeria inclusive] would witness a surge in the price of petrol, diesel, jet fuel, gas and related products in the near term.
This would have far reaching implications for many economies and businesses.
“He continues: ” Crude oil price has surged to $75 per which is about 15% higher than before the outbreak of the Israeli–Iran conflict. This development would also positively impact the country’s foreign reserves, ensure better forex liquidity and ultimately the stability of the naira exchange rate.
Revenue Effect.
The oil sector currently accounts for about 50% of government revenue.
An improvement in crude oil price would therefore have a significant impact on government revenue.
An improvement in revenue would positively impact fiscal consolidation and hopefully moderate the growth of the fiscal deficit.
Oil And Gas Investment Effect
Investments in the oil and gas sector would post better returns if the conflict persists. High oil price is good news for upstream oil and gas investors.”
