Diesel reaches N350/liter, up 56% in a year

Diesel, commonly known as automotive gas oil, has risen to N350 a litre in some Lagos filling stations. Diesel, which is not controlled by the government, has risen by nearly 40% since January when it was N225 per litre. Businesses, notably manufacturers, utilise diesel to power generators due to a lack of consistent power supply from the national grid. Many trucks and buses convey products and passengers around the nation.

Last year’s high of N340 per litre was upped to N350 by some filling stations in Lagos on Thursday Diesel, commonly known as automotive gas oil, has risen to N350 a litre in some Lagos filling stations.  Diesel, which is not controlled by the government, has risen by nearly 40% since January when it was N225 per litre.

Businesses, notably manufacturers, utilise diesel to power generators due to a lack of consistent power supply from the national grid. Many trucks and buses convey products and passengers around the nation. Last year’s high of N340 per litre was upped to N350 by some filling stations in Lagos on Thursday.

Diesel reaches N350/liter, up 56% in a year

In Ogudu, Heyden filling station along Third Axial Road sold it for N345, while Mobil along the Lagos-Ibadan Expressway sold it for N350. On the Lagos-Ibadan Expressway, Oando and Enyo stations offered the product for N340 and N335 per litre. The ultimate cost of petroleum products is heavily influenced by crude oil prices, which impact the landing cost of imported gasoline.

On Thursday, Independent Petroleum Marketers Association of Nigeria National Operations Controller, Mr Mike Osatuyi, said the recent spike in oil prices led to a further increase in diesel prices in Nigeria. If crude oil prices increase, diesel prices will climb. Added to this is the naira’s devaluation. A dollar is worth around 570-575 Naira on the black market.

On Wednesday, Brent crude surpassed $85 per barrel, its highest level in almost two months. On Thursday at 7:59 p.m. Nigerian time, it was $84.72. It was noted last week that the private sector had already raised concerns about increasing difficulties in obtaining foreign exchange for industrial raw materials. He said that the high cost of obtaining forex was reflected in the high cost of goods and inflationary trend.

A population of over 200 million people and 114kwh per capita is maybe the most humiliating aspect of the energy issue, he noted. It was recently reported by The PUNCH that the hike in fuel prices would boost the average cost of manufacturing in Nigeria.

“All Nigerians use diesel,” he remarked. Because manufacturers use diesel generators, the cost of fuel is added to the product price. Nigerians who purchase such things also pay a portion of the fuel price.

“It is regrettable that the product price continues rising with no action taken. High inflation implies less money to purchase goods, and when prices rise and the public have less money to buy those items, we will have a lot more unemployment.”

Nigeria, Africa’s biggest oil producer, imports most of its refined goods due to ageing refineries.
In Ogudu, Heyden filling station along Third Axial Road sold it for N345, while Mobil along the Lagos-Ibadan Expressway sold it for N350.

On the Lagos-Ibadan Expressway, Oando and Enyo stations offered the product for N340 and N335 per litre. The ultimate cost of petroleum products is heavily influenced by crude oil prices, which impact the landing cost of imported gasoline.

On Thursday, Independent Petroleum Marketers Association of Nigeria National Operations Controller, Mr Mike Osatuyi, said the recent spike in oil prices led to a further increase in diesel prices in Nigeria“If crude oil prices increase, diesel prices will climb. Added to this is the naira’s devaluation. A dollar is worth around 570-575 Naira on the black market.

All Nigerians use diesel,” he remarked. Because manufacturers use diesel generators, the cost of fuel is added to the product price. Nigerians who purchase such things also pay a portion of the fuel price. It is regrettable that the product price continues rising with no action taken. High inflation implies less money to purchase goods, and when prices rise and the public have less money to buy those items, we will have a lot more unemployment.”

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