Marketers Lament Non-supply From Dangote Refinery, Sell Diesel at Expensive Price
- The price of diesel is still sold between N1300 and N1,450 per litre nationwide even though Dangote Refinery slashed the price
- This came after Dangote recently announced a 30% reduction in the price of diesel from the previous market price of ₦1,600 per litre to ₦1,200
- Some dealers said that they had not received supplies from the Dangote Refinery, hence the reason they continue to sell for a high price
Despite the Dangote Petroleum Refinery's recent announcement of a N1,000 per litre price tag, Automotive Gas Oil (AGO), also called diesel, is still sold for between N1,300 and N1,450 nationwide.
Source: UGC
About three weeks ago, Dangote announced a 30% reduction in diesel price from the previous market price of ₦1,600 per litre to ₦1,200, granting oil marketers demanding a lower price their wish.
Last week, the price was further reduced, pegged at N1000.
It was anticipated that the substantial drop in diesel prices, brought about by Dangote Petroleum Refinery, would have a favourable impact on every aspect of the economy and eventually lower the nation's high inflation rate.
However, an examination conducted by our reporters in Osogbo, Lagos, and the Federal Capital Territory (FCT), Abuja, showed that oil marketers claimed that the Dangote Petroleum Refinery was not supplying diesel. Hence, the effect of the recently announced price adjustment has not yet been felt.
Marketers not bringing down price
In Lagos and Osogbo, Champion News reported that the impact of the cut has not been seen as merchants explained that this is because they have not received supplies from the Dangote Refinery and that they still have the imported product in stock, which is being sold at the previous price.
In most Lagos fueling stations, a litre of diesel costs N1300 or more, as confirmed by investigations.
The fuel price in Abuja has also not changed; it is still N1,450 per litre.
The continued high cost of diesel has negatively impacted the market, resulting in extremely high pricing for products and services.
To the dismay of customers, transportation expenses, in particular, have significantly impacted the cost of goods.
Reason for selling at expensive price
Usman Yakubu, a dealer at a filling station in Abuja, claims that most filling stations are vacant because customers are not showing up as planned. This demonstrates unequivocally the financial burden that the high diesel price is causing.
Additionally, businessman Olamide Balogun bemoaned how the high price of diesel has raised the costs of goods and services on the market since most factories rely on generators for production, the rising price of diesel is negatively affecting their companies.
Meanwhile, business owners blame transportation for the lack of appreciable decline in food and commodities prices, even in light of the naira's tremendous advance in the foreign exchange market.
Iya Ope, the owner of a food and provisions store in Osogbo, told Daily Champion on Sunday that most people are unaware that other factors than the depreciation of the naira are also to blame for the sharp increase in commodity prices.
She emphasised that people often overlook the costs associated with production and transportation.
She said:
“It’s funny when customers come around to buy goods, and when told the prices, the next thing you hear is, “Why? Naira is coming down.” Yes, the Naira is appreciating, but the cost of production is not coming down. Most manufacturers use diesel or petrol to power generators.
“Let us not forget that they use fuel to power the vehicles they use in sending these goods to us, and that is if we are way billing and if we are to go there ourselves, the cost of transport is nothing to write home about.”
Tinubu reacts to reduced diesel price
Legit.ng reported that President Bola Ahmed Tinubu has commended Dangote Oil and Gas Limited for splashing the price of Automotive Gas Oil (AGO), also known as diesel, from N1200 to N1000.
The reduction was effected after the initial decrease from N1,650 to N1200 about three months ago.
Tinubu said the price review representing a 60 per cent drop would impact the prices of sundry goods and services.
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Source: Legit.ng
