Telcos Ponder Tariff Hike As Diesel Price Skyrockets

Diesel
Telecom mast

The rise in the price of diesel could force a tariff review for telco services, telecommunications services providers under the aegis of the Association of Licensed Telecoms Operators of Nigeria have said.

This was disclosed by the Chairman, ALTON, Gbenga Adebayo, in an interview with The Punch.

He noted that the telecoms industry is one of the major consumers of diesel in the country.

The impact of the current hike in diesel prices and scarcity of the product has been felt by the sector, according to him.

He said, “It is already impacting us and very significantly so. We are one of the industries that have the highest consumption of diesel across the country.

“Our need is not just in the major cities; it is all across the country. Diesel is required in all the places that require services. We are already significantly impacted. And it is not just about the high costs, it is also about availability. Suppliers are beginning to find it difficult to supply the commodity because of scarcity.

“When they find, costs of haulage have gone up. The cost of procurement of the diesel itself has gone up significantly. We are actually in a very bad situation. And how this will play in end-user pricing requires us to follow the right channel, the regulatory procedure for conveying our complaint to the regulator.”

Adebayo assured that telcos will continue to ensure that there are no service disruptions in the nation. However, he added that there might be a need for a tariff review if the present diesel crisis persists.

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He said, “The diesel situation is a problem at this time. We are doing all that we can to ensure the business continues as usual in all cases and other every circumstance. The assurance for the public is that there would not be a time of outage because of the current diesel crisis. What I cannot assure is that at some point there may not be a consideration for some form of tariff review.

“I cannot guarantee that it will not happen sometime in the near future. I cannot guarantee that. But as it stands today, I will reassure the public that there would be continuous service at all times.

“We will continue to solve the problem to the best of our ability. We certainly need to approach the government for some intervention at some point. We are where we are. All that we are doing at this time is to ensure there are no disruptions to service.”

The price of diesel has risen to N850/litre, and is continuing to increase daily. It was N350 per litre in Lagos in January.

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