Deregulation: Diesel price hits N750 per litre across Nigeria

..Russia-Ukraine war, forex responsible for price hike — Secretary, MOMAN

…Situation may remain unchanged until deregulation of sector revisited — Madaki

By Uthman Salami, Ariemu Ogaga and Dennis Matthew

Investigation by Nigerian NewsDirect has shown that the Diesel fuel, otherwise known as, Automotive Gas Oil has hit the highest since the deregulation of the sector by federal government.

Further findings by Nigerian NewsDirect showed that the recent ceaseless increase of Diesel price may not be unconnected with the Russian invasion of Ukraine which has caused major distruption in global market.

Following the weeklong weakening of Naira to Dollar, the price of Diesel has further reacted to the volatility of the foreign exchange, a marketer told out correspondent.

Reports by our Correspondents across Nigeria revealed that even though the prices range from N600 and N700 in most of the stations, the price has hit N800 per litre in some parts of the country, the first in its history.

Details by some suppliers of the product revealed that the product was supplied at N800 as at yesterday, with more threat of potential increase in coming days.

Other suppliers said the depot price was N750 few days ago, noting that they will sell at higher to make even while in other parts of the country.

In Abuja, the Automotive Gas Oil is sold at range of N750 per litre even though some filling stations sell at a lower price.

In Ogun State, some filling stations our correspondent visited indicated that the price of Diesel was still in between N550 and N650.

Recall that many analysts in oil and gas had predicted that the war in Russia and Ukraine would create some havoc and turmoil for pricing in the sector especially since United States and United Kingdom have announced the ban on Russian crude.

Russia-Ukraine war, forex responsible for price hike — Secretary, MOMAN

Meanwhile, some of the marketers in the industry who spoke with our Correspondent supported the notion for further increase in price of the Diesel if the situation in the global market remains the same.

Speaking with our Correspondents, the Executive Secretary of Major Oil Marketers Association of Nigeria (MOMAN), Mr. Clement Isong affirmed that the escalating war between Russia and Ukraine is responsible for the hike in the price of diesel globally.

According to him, the US and other European allies have continued to sanction and place embargo on the crude oil from Russia oil, thereby destabilising the crude price.

He stressed that the diesel popularly known as Automotive Gas Oil (AGO) was available contrary to insinuation that the product was not available as widely circulated.

Mr. Isong stated that the only way forward is to pray for peace that lets Putin forgive Ukraine President, and  a withdrawal of US stringent sanctions for crude oil price to regain stability in the global market.

The Executive Secretary of MOMAN noted that forex exchange rate between Dollar and Naira remains high considering the scarcity of dollars in the country, therefore, the cost of diesel per litre is on the high rate.

When our reporter contacted the National President of Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Okonkwo, he simply said that he would get back to our correspondent as at the time of filing this report.

Recall that AGO is now sold at N700 and N750 per litre in some filling stations visited across Abuja metropolis.

Situation may remain unchanged until deregulation of sector revisited — Madaki

Also reacting to the skyrocketing price of Diesel, an oil and gas expert and Managing Partner, BBH Consulting, Barr Ameh Madaki, said the situation is likely to remain unchanged until the opaqueness in the oil & gas sector is addressed.

According to Madaki, “The pricing of Petroleum products in Nigeria will remain a concern until the opaqueness in the Oil and Gas industry is addressed. Since the deregulation of AGO  DPK,  and lubricants, the regulators have put Nigerians in a tight corner, leaving absolutely everything about the pricing of these products to the importers who are a cartel with the sole objective of profiteering.

“No oil and gas industry in the world operates that way,” he stated.