Diesel crosses N1k per litre in Lagos, Abuja

The retail price of automotive gas oil, also known as diesel, has surged in some filling stations in Lagos and Abuja.

With inflation reported at 25 percent, the price hike would inflict more pressure on household income and increase the cost of operation of businesses.

Checks by TheCable, on Wednesday, show that a litre of diesel crossed the N1,000 mark in filling stations in Abuja, Ogun, Ondo, and Lagos states.

At Shema filling station in Kado, Abuja, diesel was sold for N1,100 per litre at the time of visit.

The price was the same at the Mobil filling station located along Akute Road, Ifo in Ogun state.

An official at the station told TheCable that the price of the commodity was increased due to an upward adjustment in the ex-depot price.

In Lagos, diesel was also sold for N1,100 a litre at the MRS retail outlet in Ikeja, as well as the Diving filling station in Owo, Ondo state.

But in some filling stations, the product retailed below N1,000 a litre.

At the Nigerian National Petroleum Company (NNPC) Limited filling station, also located along the Akute road axis, the price of diesel rose from N850 to N950 a litre.

An attendant blamed the increase on scarcity of the product, adding that the retail outlet was out of diesel for two months, but only recently resumed sales.

More so, some Mobil filling stations in Festac and Apapa, sold diesel at N980 a litre; while Remdabson filling stations in Ikorodu, dispensed at N950.

‘EX-DEPOT PRICE OF DIESEL NOW N975 A LITRE’

Speaking with TheCable, Billy Gillis-Harry, president of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said the spike in the price of the commodity was largely impacted by market forces.

“Once the dollar component behaves in a certain way, it will affect the entire system,” he said.

“But that is exactly what has happened. Yesterday, everybody was running helter-skelter to pay for differentials.

“So, that is just what happened. Once it is so high, it will also be bought higher.”

Gillis-Harry said the ex-depot price was N975 a litre, as at Tuesday night.

“That is not the final price. If there is a differential, obviously, it is going to affect the end users as well as the final price and that is what will make it increase,” he said.

On Tuesday, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) expressed concern over the surge in the price of diesel.

In a statement, Benneth Korie, NOGASA president, said the rapid increase in diesel prices has made it difficult for suppliers to access products and loans from commercial banks for doing their business.

“These rising prices are also evidently causing veritable hardships to haulage transportation and commuters alike,” he said.

As a result, Korie urged the government to intervene before it jeopardises the predicted growth that the government intends to achieve.