With the price of the global oil continually increasing and the depreciation of the naira, the cost of importing fuel into the country has risen. This has led fuel marketers across the country to increase the price of Automotive Gas Oil, otherwise known as Diesel to N320 per litre.
The price of diesel, which is not regulated by the government has surged by over 4o per cent from an average price of N225 per litre in January.
It was also reported that this petroleum product was sold between N275 and N290 per litre at some filling stations in Lagos State in July.
Business owners have expressed panic with fears that the spike in diesel price might force more businesses to sack employees amid rising energy costs.
In Lagos, it was observed that the price of diesel ranged from N303 to N320 per litre at several filling stations in the state.
Total, Mobil, Oando and Capital Oil and Gas filling stations, all along the Lagos-Ibadan Expressway, sold the product for N320, N315, N305 and N304.50 per litre respectively.
Diesel is mostly used by businesses, especially manufacturers, to power their generators amid a lack of reliable power supply from the national grid. Many vehicles transporting goods and people across the country also use diesel as its source of fuel.
Crude oil price accounts for a large chunk of the final cost of petroleum products, and the further increase in oil prices means that the landing cost of imported fuel will rise.
Nigeria, Africa’s largest oil producer, relies largely on importation for petrol and other refined products as its refineries have remained in a state of disrepair for many years.