Oil Traders Predict That Diesel Prices Would Soon Reach N1,500 Per Litre.
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There is an unsettling calm in the oil and gas industry of the country following reports that the price of diesel could climb from N800 to N1500.
During a news conference in Abuja, the Natural Oil and Gas Suppliers Association (NOGASA) hinted to the possibility.
According to the group, if nothing is done to alleviate the current issue faced by importers of the unregulated product, diesel prices will skyrocket.
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“If you go around presently, you will see that roughly 75 percent of filling stations in Nigeria have gone out of business,” stated Bennett Korie, National President of NOGASA. There isn’t any diesel available to transport fuel to their stations. They’re all on their way down.
“It’s not that the fuel isn’t available; it’s just that the cost of transporting it to the stations is prohibitively expensive.” We recognize that the Ukraine-Russia situation has had a negative impact, but the government must act quickly; else, we will be forced to purchase diesel for N1000 to N1500 per litre in the coming weeks.”
He went on to say that this was also why the petrol shortages in Abuja, Nasarawa, and Niger states, among other places, had not abated.
“As far as I’m concerned, nothing for the time being.” If you really want to know, the only way out is for them (the government) to raise fuel prices somewhat to lower the amount of money spent on PMS subsidies.
“I understand that this would upset Nigerians, but it is the only option.” They should raise the price of petrol a little to generate enough savings for the Nigerian Central Bank to have enough foreign exchange.
“As you and I both know, we currently import everything in Nigeria. Diesel is an imported product that is unrestricted. As a result, importers are unable to obtain dollars at the official CBN rate in order to import diesel. Everyone is turning to the illicit market for dollars to import their goods, so you can expect diesel prices to be high,” he added.
