Petrol Marketers Speak as Diesel Hits N950/Litre, Factories Fear Shut Down, Job Losses Loom

• Oil marketers have revealed that the price of diesel will hit about N950 per litre
• The marketers say the volatile exchange rate market and shortage of dollars have hindered their ability to import the product
• They also stated that the recently implemented 7.5% VAT on diesel has also contributed to the increase in diesel price

Oil marketers on Monday, August 14, 2023, said the foreign exchange problem in Nigeria and the implementation of a 7.5% Value Added Tax (VAT) on diesel had pushed up the cost of the commodity to between N900 and N950 in many states.

The development has led manufacturers to say the situation may lead to factories shutting down.

Oil marketers blame VAT and dollar shortage

During a press briefing in Abuja, oil marketers said their inability to access dollars hampers their ability to import diesel.

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Punch reports that the President of the Natural Oil and Gas Suppliers Association (NOGOSA), Benneth Korie, said the cost of diesel was about N650 per litre before the Nigerian government introduced a 7.5% VAT on the product.

Legit.ng had reported that the Nigerian government began the implementation of a 7.5% VAT payment on diesel on June 19, 2023.

Customs and Federal Inland Revenue Service (FIRS) officials revealed that the commodity was not exempted from VAT payment based on the VAT Modification Order.

But the Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, Taiwo Oyedele, revealed recently that the committee would recommend the removal of VAT from diesel since the subsidy on petrol has been removed.

In Abuja on Monday, August 14, 2023, Korie, the NOGOSA president, said the price is now approaching N900/litre, depending on where consumers buy the commodity.

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Fix roads and refineries to reduce cost of commodity

Korie called on President Bola Tinubu to ensure that the refineries were working, stating that the pressure by marketers and other importers would ease when the refineries began to produce refined petroleum products.

He said Nigerian roads are also deplorable, stating that about 500 tankers were trapped on the Warri-Abuja road.

Meanwhile, manufacturers in Nigeria fear job losses and factory closures following the hike in diesel prices.

They say many manufacturers fear that they might shut down their factories following the hike, which could increase production costs.

N1000/litre: African countries where petrol is cheap, Nigeria makes the list

Legit.ng reported that following the depreciation of the naira, petrol marketers have hinted at the possibility of a hike in petrol prices in the coming weeks.

Legit.ng reported that the naira crashed to N930 to a dollar on Thursday, August 10, 2023, prompting the marketers to mull an increase in the pump price of the product.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) said there will be changes in the pump price of fuel in the country.

Source: Legit.ng