Diesel Nears N2,000 Per Litre as NNPC Sets Timeline to End Petrol Import

• The price of diesel across Nigeria has risen to about N1,700 per litre, depending on the petrol station
• Manufacturers have decried the cost of the product as impacting negatively on their bottom line
• The effect of the increase in petrol is seen with the high cost of consumer goods, with manufacturers seeking to recoup their costs

Legit.ng's Pascal Oparada has reported Tech, Energy, Stocks, Investment and the Economy for over a decade.

The continuing surge in diesel prices, which has now exceeded N1,700 per litre, devastates Nigerian businesses struggling with power outages.

The unreliable power supply from the national grid has forced firms across Nigeria to depend on diesel generators to keep their operations afloat.

Petrol stations hike the price of diesel

Meanwhile, the product's price makes diesel use unsustainable for many businesses.

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According to surveys across filling stations in Lagos, marketers sold the product at various prices, between N1,690 and N1.710 per litre, depending on the marketer.

Reports say that in Abuja, filling stations sold the product at various prices ranging from N1,500 to N1,710 per litre.

Analysts say the impact of the high cost of diesel on businesses is devastating as the price is ultimately passed onto the consumer.

BusinessDay reports that an official of the Manufacturers Association of Nigeria (MAN) said that the hike in diesel prices is a serious issue.

According to the official, it is difficult for manufacturers to break even, considering Nigeria's inflation cost.

Nigeria is suffering from a low power supply

Nigeria is suffering from low power supply due to a shortage in gas supply, which reports the Nigerian government owes about $1.3 billion.

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Recently, the Nigerian government confirmed paying the suppliers about $120 million to offset part of its debt to the gas firms.

The Minister of Power, Adebayo Adelabu, said that the crash in electricity generation and the poor power supply since the beginning of the year was due to low gas supply to generating companies.

FG pays $120 million to gas firms

Africa's largest economy gets more than 70% of its electricity from thermal stations, with the remaining amount coming from hydropower-generating plants.

Speaking at the 7th Nigeria International Energy Summit in Abuja, Ed Ubong, director at Decade of Gas Secretariat, expressed excitement that the Federal Government had cleared $120m out of the $1.3bn gas debts.

"As of last year, that (gas debts) was about $1.3 billion, depending on how you add up the numbers. But I am pleased that the government has paid over $120m to offset some of that money between October and the end of January," Ubong said.

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NNPCL puts timeline to end petrol import

Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) has revealed that Nigeria’s energy scarcity will end in the next 10 years.

The development comes as the Dangote and the Port Harcourt refineries are gearing up to produce premium motor spirit (PMS), otherwise known as petrol, in Nigeria.

Last week, the minister of state for labour and employment, Nkeriuka Onyejeocha, told organised labour that the Port Harcourt refinery was about 80% complete.

Source: Legit.ng