*Nigerian fuel importers lament about 75 percent of filling stations have gone out of business in the economy

Isola Moses | 绿帽献妻

As inflation bites harder with attendant hardships besetting consumers in the Nigerian economy, the leadership of the Natural Oil and Gas Suppliers Association (NOGASA) has hinted at possible increment in diesel price to N1,500 July 2022 from current N800 cost.

Bennett Korie, President of NOGASA, who disclosed this development to reporters Tuesday, in Abuja, urged the Nigerian Government to jack up听 petrol price, according to report.

Korie stated stated the shortage of Foreign Exchange (Forex) is part of the factors driving the cost of diesel high in the country.

He also explained that importers of the commodity are sourcing for Dollars in the black market, due to limited FX in the official market.

According to him, Forex in the black market is expensive, and the cost is adversely the price of diesel.

Korie further revealed the price will increase to N1,500 in the next two weeks, if the Federal Government doesn鈥檛 intervene in the Forex shortage, as well as likely shutdown of operations in some companies.

鈥淚f you go round now you will see that about 75 percent of filling stations in Nigeria have gone out of business.

“There is no diesel to take fuel to their stations. All of them are going down,” Korie said.

The NOGASA Chief stated: 鈥淚t is not that the fuel is not there, but the cost of bringing it to the stations is too high.

“We know that the crisis between Ukraine and Russia has contributed badly, but the government has to do something fast, otherwise we are going to buy diesel in the next two weeks at N1,000 to N1,500/litre.鈥�

The solution to curb the inflation in diesel price, he noted, is for the government to increase petrol price in order to cut the Dollar spend on fuel subsidy.

Korie also said: 鈥淭he only way out, if you want to know, is that they (the government) should increase the price of fuel a little to reduce the money spent on PMS subsidy.

鈥淚 know Nigerians will not be happy to hear this, but this is the only solution. “They should increase the price of fuel a little so that the savings will enable the Central Bank of Nigeria to have enough foreign exchange.”

He stated: 鈥淵ou and I know that we import everything now in Nigeria. Diesel is an imported product and it is fully deregulated.

“So the importers are not getting dollars at the official CBN rate to import diesel.”

鈥淓verybody is going to the black market to get dollars to import their products and so you expect the price of diesel to be high.鈥� Korie said.

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