The Major Oil Marketers Association of Nigeria says the landing cost of the Automotive Gas Oil, also known as diesel has increased to N336.45 per litre, increasing fears that its pump price may rise further.
The pump price of Automotive Gas Oil, also known as diesel, may rise further as the Major Oil Marketers Association of Nigeria says its landing cost has increased to N336.45 per litre.
The fuel marketers had increased the price of diesel, to N320 per litre this October, as the further rise in global oil prices and naira depreciation pushed up the cost of importing fuel into the country.
The price of diesel, which is not regulated by the government, has increased by over 46 per cent so far this year from an average price of N225 per litre in January.
Diesel is mostly used by businesses, especially manufacturers, to power their generators amid a lack of reliable power supply from the national grid, with vehicles transporting goods and people across the country also using diesel.
At the 15th OTL Africa Downstream Week 2021 in Lagos on Wednesday, the Executive Secretary/Chief Executive Officer, Major Oil Marketers Association of Nigeria, Clement Isong, in his presentation, said as of Tuesday, a member of the association was able to bring diesel into the country at a landing cost of N336.45 per litre while the landing price was N338.78 per litre.
“What you land your diesel at is a function of how much you get your US dollars, more than anything else. Diesel in Nigeria is deregulated; it is still the cheapest in the African region,” he said.
Comments expressed here do not reflect the opinions of Vantage News Nigeria or any employee thereof.