Oil marketers on Monday, stated that the Federal Government’s (FG) resolve to remove Value Added Tax (VAT) on Automotive Gas Oil (AGO) also known as diesel is commendable but not a permanent solution to the price increase menace.
It said although the move was a great step towards alleviating the hardship occasioned by the increasing price of diesel, there was a need for the country’s refineries to be made operational.
The Spokesperson, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr.Chinedu Ukadike stated this while speaking with Tribune Online.
His words: “It is a welcomed development because we are not happy with the high cost of diesel in the market and this relatively affects the prices of goods and services in the market thereby causing inflation.
“As marketers, the removal of VAT on AGO will also bring down the price but this is not a permanent solution. The most important thing is to look at putting our refineries to work as well as the modular refineries to produce diesel for consumers.
“AGO is used to power our trucks, machines and for industrial use. It will add to factors of production which invariably will increase the price of petroleum products.”
President Bola Tinubu had in a bid to forestall the commencement of the planned indefinite
strike by the Labour Unions on Tuesday announced the removal of VAT on diesel among other critical developments.
Oil marketers had in August cried out over the implementation of VAT on diesel and foreign exchange has further driven up the price of diesel.
Also, Bennett Korie the National President, Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) had recently 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”.
He said the rapid increase in prices has made it difficult for suppliers to access products and loans from commercial banks.
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