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Businesses continue to suffer as diesel price hits N650 per litre

The retail price of automotive gas oil, also known as diesel, has spiked to N650 a litre in some fuel stations, leading to more woes for businesses that depend on the commodity to run their operations.

Earlier in the month, the ex-depot price of the product had crossed N500/litre, causing fuel stations to adjust their pump prices to current realities.

About a week ago, it has been reported that the price of automotive gas oil, also known as diesel, hit N625 per litre in some fuel stations.

Checks show that the price of diesel in some fuel stations at Victoria Island and Festac Town remain unchanged at above N600 a litre.

At the Nigerian National Petroleum Company (NNPC) fuel station located in Second Rainbow, along Oshodi/Apapa road, diesel is priced at N650 on Friday.

The price is the same at Remdabson and Mobil fuel stations in Ikorodu.

With rising global oil prices skyrocketing, imported petroleum products, including diesel, kerosene and aviation fuel, have hit the roof in Nigeria.

Bukola Saraki, former senate president, had said there is no justification for the rise in diesel and aviation fuel prices in the country as the products must have been “shipped two months ago”.

The price surge is coming amid the recent power outages experienced in the country.

On Monday, the national electricity grid had suffered a system collapse leading to power outages across the country suffering the same fate on Tuesday.

The new development has further exacerbated spending for sectors that rely on diesel generators and on-grid electricity.

The Manufacturers Association of Nigeria (MAN) and telecoms union had decried the impact on businesses.

On Thursday, Tony Elumelu, chairman of the United Bank for Africa (UBA) Plc, also lamented the worsening living conditions in the country listing erratic electricity supply, hikes in the price of diesel, frightening food inflation as issues bedevilling the country.

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