Friday, September 29, 2023

Diesel Price Hits N1,100/litre

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Petrol marketers have called for urgent intervention by the federal government to arrest the fast increase in the pump price of diesel and prevent an imminent distribution crisis.

The marketers said they can no longer sustain the distribution of petrol and other products nationwide as the price of diesel used to power their trucks now sells for N1,100 per litre in many locations.

The marketers, under the aegis of the Natural Oil and Gas Suppliers’ Association of Nigeria (NOGASA), raised the alarm in a statement on Tuesday.

READ ALSO: Subsidy: Labour Threatens Indefinite Strike

The association’s president, Mr. Benneth Korie, said that diesel has witnessed an incessant hike in prices in recent months, a development he said has been worsened by marketers’ inability to secure cheap bank loans that will enable them to restock and sell petrol at the current pump price of N617 per litre.

Korie lamented that the rapidly-rising diesel price was evidently causing hardships in haulage transportation and commuting alike.

He, therefore, called on the government to intervene before the sector gets grounded and derails the anticipated growth.

The union’s annual general meeting (AGM), which is taking place in October, will focus heavily on finding long-term solutions to the ongoing increase in diesel prices, the NOGASA president assured.

According to him, “NOGASA is worried about the ugly development and trying to understand why prices of diesel are going as high as N950 to N1,100 per litre in the market with a view to moderating the prices and shocks in the economy.”

Experts, however, were of the view that the hike in diesel prices may stem from the rise in crude oil prices, which currently stand at $95 per barrel.

READ ALSO: BREAKING: NLC Declares Two-Day Strike Over Subsidy Removal Effects

Another factor is the Naira slump, which is inching towards N1,000/$1 in the parallel exchange rate market.

Korie suggested that the government give the Nigerian refineries urgent attention to prevent the economy from collapsing due to rising energy costs.

“We will continue to deliver on our mandate as we make progress in the oil and gas industry.

“We advise that suppliers should go about their respective businesses until proper resolution is taken at the NEC meeting,” Korie stated.



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Photo credit: Getty

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