The Pacesetter Frontier Magazine

Tag: diesel price

  • Reps to investigate hike in diesel price

    House of Representatives, Tuesday, resolved to investigate the sharp increase in the price of diesel also known as AGO.

    It therefore mandated its Committees on Petroleum Resources (Downstream), Petroleum Resources (Upstream), and Gas Resources to handle the assignment with a view to ensuring that a reasonable price is fixed to alleviate the sufferings of Nigerians.

    The resolution followed the consideration of a motion presented at the plenary by Hon. Chike John Okafor, (APC, Imo)Moving the motion, Okafor recalled that Nigeria Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA) was created in August 2021 in line with the Petroleum Industry Act with the mandate to provide effective regulatory oversight, ensure sufficient product distribution and supply at an equitable and fair price.

    According to him, almost all businesses and households in Nigeria depend on diesel-powered generators as an alternative source of electricity.

    He said: “The outrageous rise in the price of Automotive Gas Oil (Diesel) as the product which was sold between N280 to N350 per liter three (3) weeks ago is currently being sold above N780 per liter and still rising on a daily basis accounting for over 115.4 percent increase within three weeks.

    “Diesel was deregulated in 2009 with an initial price of 100 Naira per liter, and between 2009 till date, Nigerians have witnessed a rising percentage increase in the price of the product.

    “The hike in the cost of diesel is alleged to be the handiwork of unscrupulous stakeholders in the industry, and is tantamount to economic sabotage, causing untold hardships for Nigerians as it will result in an increase in prices of food as well as other goods and services.

    “The possible inflationary pressure envisaged from the rise in the cost of diesel could reduce consumers’ disposable income, thus making it impossible for average Nigerians to meet their basic needs.”

    The lawmaker submitted that if the ugly trend of the increasing price of diesel was not checked, the multiplier effect will spell doom for Nigeria’s economy.

    The motion was supported by the majority when put to voice vote and eventually adopted.

    The Committee was given 6 weeks within which to conclude the assignment and report back for further legislative action.

    (Vanguard)

  • Inflation: MAN calls for FG’s intervention as diesel price hit N720

     

    The Manufacturers Association of Nigeria (MAN), has called for Federal Government’s urgent intervention to support the production of goods, as cost of diesel hits N720 per litre.

    Mr Lanre Popoola, the Chairman, Manufacturers Association of Nigeria (MAN), Oyo, Osun, Ekiti and Ondo branches, stated this in Ibadan on Sunday, while speaking on the increase of prices of petroleum products and lack of power supply.

    “It is a difficult thing ensuring production at this time, as diesel has gone up to N720 and N730 per litre.

    “It is getting extremely difficult to produce and I don’t know how we are going to cope because 70 per cent of industries are running on diesel, there is no light.

    “There is no power supply, we are having 30 per cent of what it used to be, whereas the disposable income of people is not increasing and the cost of products is going up.

    “Even in my factory now, we are only running one shift instead of three shifts of eight hours each.

    “Other businesses are also running limited hours on diesel as they cannot afford to use generators all day,” Popoola added.

    The chairman noted that, if the situation persisted, it could lead to bigger issues that would further affect the nation’s economy and increase the hardship of Nigerians.

    “The worst part is that diesel suppliers cannot agree for organizations to make a flexible payment plan such as instalments, while they deliver the products in trust.

    “They cannot again supply you with diesel and allow you to pay in two weeks. It is either you do cash and carry, or pay ahead, because they too cannot predict the cost of the product.

    “And I don’t blame them, imagine you bought diesel last week at N630 per litre and the next day it is sold for N730 per litre, how will you replace your stock,” he said.

    Popoola stated that the way forward was for the government to come in and assist manufacturers, by giving some rebate on diesel, adding that, that was the only lifeline.

    “Aside manufacturers, for transporters that are bringing food from the North or taking products to the East or Lagos, now the cost of their logistics would have doubled by 100 per cent if not 200 per cent. “May be the government can come in and do a kind of palliative for us, it is either we have light 24 hours per week, to run our factories or do a palliative on diesel.

    “But unfortunately, we don’t produce diesel in this country, if the refineries are working, it is a different ball game, the country would have had it better now, if the refineries are working.

    “So the more the international prices of Petroleum products go up, the higher the prices of what we are going to get from them,” Popoola said.

     

    (Sun)