The pump price of Automotive Gas Oil, also known as diesel, may rise further as the Major Oil Marketers Association of Nigeria says its landing cost has increased to N336.45 per litre.
The PUNCH had reported on October 7 that fuel marketers had increased the price of diesel, to N320 per litre as the further rise in global oil prices and naira depreciation pushed up the cost of importing fuel into the country.
Our correspondent observed on Thursday that the price of diesel had been increased to N325-N330 per litre at several filling stations in Lagos from N303-N320 per litre three weeks ago.
Mobil, Fatgbems as well as Capital Oil and Gas filling stations, all along the Lagos-Ibadan Expressway, sold the product for N325, N330 and N329 per litre respectively, up from N315, N305 and N304.50 per litre on October 6.
The price of diesel, which is not regulated by the government, has surged by over 46 per cent so far this year from an average price of N225 per litre in January.
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.
The Executive Secretary/Chief Executive Officer, Major Oil Marketers Association of Nigeria, Mr Clement Isong, in his presentation at the 15th OTL Africa Downstream Week 2021 in Lagos on Wednesday, said as of Tuesday, a member of the association was able to bring diesel into the country at a landing cost of N336.45 per litre while the landing price was N338.78 per litre.
“What you land your diesel at is a function of how much you get your US dollars, more than anything else. Diesel in Nigeria is deregulated; it is still the cheapest in the African region,” he said.
The price of crude oil accounts for a large chunk of the final cost of petroleum products, and the recent increase in oil prices means that the landing cost of imported fuel will rise.
The international oil benchmark, Brent crude, rose above $86 per barrel on Monday, but fell to $84.04 per barrel as of 7:30pm Nigerian time on Thursday.