The average cost of Automotive Gas Oil (AGO), otherwise known as diesel, has risen to about N625 per litre in some of the filling stations that are willing to sell in Lagos State, with some of them selling for as high as N630 per litre.
The surge in the price of the product represents a 118.75% increase in less than 2 months, when compared to the N288 per litre that it sold in January 2022, according to the figure released by the National Bureau of Statistics (NBS).
The dramatic increase in the pump price of diesel at filling stations could be attributed to the depreciation of the Naira which has pushed up the cost of importing the product and most importantly the surge in global crude oil price as a result of the Russia-Ukraine war.
Investigations conducted by Nairametrics revealed that the price of diesel which has been fully deregulated and no longer regulated by the Federal Government now sells for between N620 per litre and N640 per litre in some filling stations in Ikeja, Ojota, Lekki, Ketu and others, that are willing to sell the product in Lagos.
Some filling stations hoarding product
It was observed that some of the filling stations were hoarding diesel and claimed they have run out of stock, while the few that admitted having the product, refused to sell, claiming that the little supply they have is for either their special or credit customers.
The high cost of diesel has been compounded by the epileptic power supply and sometimes power blackout, which has increased the demand for the product as industries, businesses and households would need to power their generators.
A fuel attendant with Mobil Station along Lagos-Ibadan expressway told a Nairametrics analyst that the price has increased from N540 per litre last Saturday to N630 per litre today.
A resident of Ogudu GRA in Lagos, who confirmed the hoarding of diesel by some filling stations, said that he was lucky to buy the product at N625 per litre at Ketu after some of the retail stations in Ojota and Ikeja axis refused to sell.
MAN warns of a further hike in prices of commodity
The Manufacturers Association of Nigeria (MAN) has warned Nigerians that they should expect a further surge in the prices of goods and services as the cost of diesel hits N630 per litre and above.
According to a source in the MAN’s Infrastructure Committee, the rise in inflation would be driven by a higher cost of production for manufacturers who depend largely on diesel for production.
The source said, “The rise in the price of diesel means higher production cost for manufacturers because most of us rely on diesel to produce. So when the cost of production is high, then manufactured products will be sold at a higher price, this is to enable the manufacturer to make a profit after-sale and stay afloat.
“So basically it will increase the inflation in the country which is already high, further compounding the problems and plight of Nigerians.”
What you should know
- Recall that 4 days ago, Nairametrics reported that the price of diesel had hit N545 in some fuel stations across Lagos, with some stations along the Lagos-Ibadan expressway selling at N545/litre and others in Abuja selling between N440 and N460/litre.
- The National Operations Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, had in a recent media briefing, said that the recent increase in oil prices had led to further hikes in diesel prices in Nigeria.
