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Diesel price may hit N1,500 per litre in the next two weeks



The Pure Oil and Gasoline Suppliers Affiliation has mentioned that the worth of diesel would maintain rising and may hit N1,500 per liter within the subsequent two weeks if nothing drastic is completed to curtail the present problem confronted by importers of the product.


Talking to newsmen in Abuja, the Nationwide President of the Affiliation, Bennett Korie, mentioned that about 75 per cent of filling stations throughout the nation are at the moment out of enterprise on account of their incapability to buy diesel required to energy their tankers and transport Premium Motor Spirit, popularly referred to as petrol, to their numerous shops. He said that the one answer to the present problem is for the Federal Authorities to boost the pump value of petrol a bit as a way to cut back the large international change utilized in PMS imports.


“In case you go spherical now you will note that about 75 per cent of filling stations in Nigeria have gone out of enterprise. There isn’t a diesel to take gasoline to their stations. All of them are taking place.

And it’s not that the gasoline is just not there, however the price of bringing it to the stations is simply too excessive. We all know that the disaster between Ukraine and Russia has contributed badly, however the authorities has to do one thing quick, in any other case we’re going to purchase diesel within the subsequent two weeks at N1000 to N1500/litre.”


On what may be performed to the deal with the state of affairs, Korie mentioned

“The one manner out, if you wish to know, is that they (the federal government) ought to enhance the worth of gasoline a bit to cut back the cash spent on PMS subsidy.

I do know Nigerians is not going to be completely satisfied to listen to this, however that is the one answer. They need to enhance the worth of gasoline a bit in order that the financial savings will allow the Central Financial institution of Nigeria to have sufficient international change.

You and I do know that we import every part now in Nigeria. Diesel is an imported product and it’s absolutely deregulated. So the importers usually are not getting {dollars} on the official CBN fee to import diesel. All people goes to the black market to get {dollars} to import their merchandise and so that you count on the worth of diesel to be excessive.”


Korie steered that the Federal authorities wants to cut back the speed at which it spends international change on PMS imports as it can assist different businessmen who import diesel to herald merchandise at low costs.


“So you might want to enhance gasoline value a bit as a way to be certain that the {dollars} spent in importing petrol is lowered and there will probably be sufficient foreign exchange for importers of diesel and it will lower down the worth of diesel.”he mentioned


Talking additional, he mentioned

“The explanation why you’re having shortage of petroleum merchandise significantly in Abuja is because of the excessive value of diesel. The worth of diesel at present out there is N850/litre. Additionally, you will agree with me that the cash being paid as bridging claims to transporters is just not sufficient.

The worth is N850/litre and you’re giving your driver 1,200 litres from Lagos to Abuja, in the event you do the calculation you will see that out that the touchdown value (for transporting the gasoline) is about N40/litre.

So in the event you add that to PMS, shopping for on the depot value and promoting right here, it’s too excessive. So in case your value of bringing it in is at N40/litre and you acquire it at N155/litre, while you add this you’ll get N195/litre. However you’re to promote at N165/litre. So who will try this sort of enterprise? It’s already a loss-making enterprise.”


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