BUSINESSES LAMENT AS DIESEL PRICE INCREASES TO N250 PER LITRE
Originally published on October 25, 2018
As the price of Automotive Gas Oil (Diesel) increases to N250 per litre, several businesses are bearing the brunt because they depend on diesel-powered generators as their major source of electricity as power supply from the national grid remains epileptic.
In September, the National Bureau of Statistics recorded that the average price paid by consumers for diesel increased by 1.79% month-on-month and 5.99% year-on-year to N207.98 in August 2018 from to N204.32 in July 2018.
States with the highest average price of diesel were Borno (N242.86), Taraba (N231.67) and Sokoto (N228.33), while states with the lowest average price of diesel were Ebonyi (N195), Adamawa (N185) and Nasarawa (N180).
With recent development, some filling stations in Lagos had increased the pump price of diesel to N250, while many others sold it at around N230-N245.
Commenting on this, the Chief Executive Officer/Executive Secretary, Major Oil Marketers Association of Nigeria (MOMAN), Mr Clement Isong, attributed the diesel price hike to the increase in global crude oil prices and inadequate access to foreign exchange at competitive rates by private marketer.
He explained that unlike Premium Motor Spirit (petrol), diesel has been deregulated and its pump price is adjusted to reflect the reality in the global crude oil markets and international oil benchmark, Brent crude, recently rose to a high of $86 per barrel.
Also contributing, the Director General, Lagos Chamber of Commerce and Industry, Mr. Muda Yusuf, described the impact of the diesel price hike on businesses as “very severe.” He opined that “If we our refineries are working well, we would not be subjected to this kind of skyrocketing cost of diesel.”
The Vice-President, Industries, Association of Small Business Owners of Nigeria, Mr. Kayode Okanrende, expressed that the hike in diesel price is disheartening because Nigeria has crude oil, yet we depend on other countries to supply us diesel. He believes that if government should work on the production of diesel in the Nigeria, there would be stability in the price.