Oil marketers have lamented the soaring increase in the ex-depot price of Automotive Gas Oil (AGO) also known as diesel which now sells between N970 and N1000.
Between July and September, the price moved from N600 to the current price, development marketers described as “alarming”.
The National President, Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) in a statement issued in Abuja on Tuesday said the rapid increase in prices has made it difficult for suppliers to access products and loans from commercial banks.
According to him, the rising price has affected haulage, thus calling on the government’s intervention.
“NOGASA is worried about the ugly development and is trying to understand why prices of diesel are going as high as N950 to N1100 per litre as of today in the market. However, the price of crude oil as of today is $95 per barrel and dollar exchange is racing towards #1000 per dollar,” he said.
To this end, he reiterated the need for the government to urgently revamp the country’s refineries to forestall the economy from nose-diving.
“The Natural Oil and Gas Suppliers Association of Nigeria has been playing a pivotal role in the oil and gas industry and will continue to ensure the availability of adequate supplies of products to Nigerians.
“We will continue to deliver on our mandate as we make progress in the oil and gas Industry.
“NOGASA, a premiere organisation of legitimate, organized and proficient suppliers, dealers, stakeholders and practitioners in the nation’s oil and gas sector distribution chain will continue to provide quality services for all,” he noted.
Meanwhile, Spokesperson, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr.Chinedu Ukadike noted that the current price of diesel is also determined by location.
He noted that with the continued fall of Naira against the dollar and the increasing price of crude at the international market, prices of products are expected to rise.
On why the price of the Premium Motor Spirit (PMS) has remained static despite the factors cited, Ukadike said there has been a quasi-deregulation on PMS.
He described this as some sought of “semi-palliative” provided by the government to cushion the effect of subsidy but pointed out that this does not cover the price of Diesel.
“There has been a rapid increase in the price of diesel. You know that diesel has been long deregulated. Now the impact of deregulation on PMS whose consumption is higher than diesel will affect the economy and bring about unnecessary inflation on prices of goods and commodities.
“Looking at the factors of trade, you will agree with me that excess demand makes the price of products go high. When diesel was deregulated, the price of the dollar was not very high but now the dollar rate has gone high and oil price in the international market is around $95/barrel.
“On the side of PMS, you know has introduced a kind of quasi-deregulation like a semi-palliative whereby the government is trying to cushion the effect of subsidy so that it will not have adverse effect on commuters especially those that are using the premium motor spirit.
“The NNPC GMD told us that once the dollar rate is going high, we should not expect the price of PMS to be stagnant but I don’t know what the government is doing to peg the price of PMS ex-depot price at N580, N585, N600. That means they must have introduced a quasi-deregulation regime and this does not affect the price of diesel,” he said.
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