Manufactures in Nigeria have called on the government of that country to intervene as the cost of Automotive Gas Oil, also known as diesel, has spiralled upwards, leading to fears that the economy could be crippled by its unavailability. This appeal was made by a regional chairman of the Manufacturers Association of Nigeria, Lanre Popoola. over the weekend where he bemoaned the dual crisis of inadequate power supply and the exorbitant price of diesel, which most factories use in providing power supply.
Popoola asked that the government provide a rebate in the cost of diesel for manufacturers as businesses and supply chains are now threatened by the price; now triple what it used to be.
“Aside from manufacturers, for transporters that are bringing food from the North or taking products to the East or Lagos, now the cost of their logistics would have doubled by 100 per cent if not 200 per cent. Maybe the government can come in and do a kind of palliative for us, it is either we have light 24 hours per week, to run our factories or do a palliative on diesel” Popoola noted.
He also added, “But unfortunately, we don’t produce diesel in this country, if the refineries are working, it is a different ball game, the country would have had it better now if the refineries are working. So the more the international prices of Petroleum products go up, the higher the prices of what we are going to get from them.”
The cost of petroleum products has increased in most African countries following the Russian invasion of Ukraine which has increased the cost of commodities and disrupted the supply of refined products. In Nigeria, although petrol is subsidized to keep it at a uniform price, diesel is not and its costs are determined by global rates and trends. It now retails in Nigeria at N720 naira, compared to N280 in January.
