By Mike Adeyemi
Fuel marketers have increased the price of Automotive Gas Oil, also known as diesel, to N320 per litre as the further rise in global oil prices and Naira depreciation pushed up the cost of importing fuel into the country, National Pilot learnt.
The price of diesel, which is not regulated by the government, has surged by over 40 per cent so far this year from an average price of N225 per litre in the second quarter of this year.
Business owners in the state have expressed fear that the spike in diesel price might force more businesses to sack employees amid rising energy costs.
Diesel is mostly used by businesses, especially manufacturers, to power their generators amid the lack of reliable power supply from the national grid. Many vehicles transporting goods and people across the country also use diesel.
Our reporter observed on Friday that the price of diesel ranged from N303 to N320 per litre at several filling stations in Kwara State.
Kamim, Bovas, Orange and NNPC Mega Station, all along Asa-Dam Road, sold the product for N320, N315, N305 and N304.50 per litre respectively.
Crude oil price accounts for a large chunk of the final cost of petroleum products, and the further increase in oil prices means that the landing cost of imported fuel will rise.
Reacting, the Managing Director of Orange Petroleum, Kasim Adetunji laments that marketers importing diesel into the country could not get access to dollars at the official rate of N413/$1.
“We are not able to get the dollars we need from the banking system for fuel imports; so, it is because diesel pricing is free that is why we are still importing it. But because the pricing of petrol is pegged, we cannot import it,” Adetunji said.
The immediate President of Small and Medium Enterprise, Kwara Chapter, Ayo Ajisefini said the latest surge in diesel price would increase the average cost of manufacturing in the country.
“All Nigerians depend on diesel. The reason is that manufacturers produce with diesel-powered generators; so, whatever they spend on diesel is added to the prices of their products. As far as Nigerians are buying those products, they are also paying part of the diesel price.
“It is unfortunate that the price of the product keeps increasing and nothing is being done about it. The high inflation rate in the country means that people have less money to buy things, and when prices are going up and the masses have less money to buy those products, we are going to have a lot of joblessness in the country,” he stressed.
Ajisefini further added that surge in the prices of the commodity had forced quite a number of small business owners to close shop in Kwara while many were struggling to survive.
“Even if diesel price is deregulated, there should be some level of monitoring by the government to actually see if the marketers are still doing the right thing or they are over-profiting from this venture,” he affirmed.
