The price of the product has increased from N600 to between N900 and N950 per litre as a result of the imposition of a 7.5% value added tax on automotive gas oil (AGO), better known as diesel, and the foreign exchange crisis in Nigeria, according to oil marketers.
On Monday, August 14, the marketers urged the Federal Government (FG) to take immediate action, claiming that their inability to obtain US dollars was preventing them from importing diesel.
Bennett Korie, the national president of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), stated during a briefing in Abuja that the cost of PMS will increase since diesel is used to transport petroleum products.
He added that there was a need for the Federal Government to swiftly address the price crisis occasioned by the rising dollar rate stating otherwise, the price of both products may go higher than the current prediction.
“Before now, diesel was about N600 before they talked about tax on the diesel. The dollar rate has become very topical. The whole thing is a mess, so we suggest that the government move into action on this dollar issue otherwise the price of diesel and petrol will go higher than what you see today.”
Korie suggested the Central Bank of Nigeria (CBN) needs to meet with stakeholders such as the Bureau De Change operators to create a uniform dollar rate acceptable to all.
“So the only way out is to take serious action. Call the BDC to sit with CBN and create one uniform rate that will be okay. This is not our money. You can sit down and say if you want to sell to us, this is how much we will buy from you, and if you want to sell, don’t sell for more than this price. And that way, they can control the dollar.” Yes, Mr. President said free, everybody should trade which is normal but the way it is going, it will destroy a lot of things for us,” he warned.
He also asked the government to prioritize modular refineries .
“There is a need for government to sell crude oil to these refineries; at least we have modular refineries of 5000 to 10,000 barrels per day.
