Mkpoikana Udoma
Port Harcourt — The Independent Petroleum Marketers Association of Nigeria has raised the alarm over rising cost of Automotive Gasoline Oil, decrying that diesel was now N620 per litre.
IPMAN Chairman in Rivers State, Dr Joseph Obele, lamented that the increase in the price of AGO was economically more damaging than the increase in the price of Premium Motor Spirit.
Obele who disclosed that the price of AGO in less than one year has jumped from N250 per litre to N620, said it will lead to the increase in price of goods and services, as diesel was majorly used by manufacturers and factories for powering their plants.
He maintained that the only remedy was to fix the nation’s refineries urgently so that happenings in the international market will not have any impact on the country.
“As at last year 2021, diesel was selling in Nigeria for N250 per litre. It moved to N400 early this year, later moved to N500. As we speak, it is selling at N620. Business owners are feeling the pinch and it will automatically descend on the consumers at any buying point.
“The price increase in diesel means that Nigerians will pay more for commodities as diesel is the only product used by manufacturers or factories for powering their generator plants.
“The reason is that Nigeria still depend on imported petroleum products from the international market, since our refineries are not working. It is currently expensive at the international market.
“It is obvious that the increase in diesel price is expected to triple the cost of production and accelerate the inflationary pressure in the country. Diesel is deregulated in Nigeria, which means the increase in the international price of crude oil is responsible for what we see across the nation.
“It is unfortunate that the rise in the price of diesel will further worsen the ugly inflation index of Nigeria. Prices of the product keeps increasing and nothing is being done about it.
“The high inflation rate in the country means goods are expensive, people have less money to buy things, when prices are going up, the masses have less money, to buy those products, we are going to have a lot of joblessness in the country.
“Russia and Ukraine conflict has led to significant increase in the price of crude, so Nigerians should expect more increases both in Aviation Fuel, PMS and AGO.”
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