Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Manufacturers Association of Nigeria (MAN) and have expressed concern as the price of Automotive Gas Oil (AGO), known as diesel hit all time high of N750 per litre.
They expressed displeasure over the rising price of the petroleum Product and have called on the federal government to intervene.
MAN said rising price of the product is already impacting on their cost of production which no doubt increase the prices of manufactured product as a result this will trigger hyper inflation.
IPMAN said marketers are worried
because each time they go the depot to load new price of diesel will be given to them. According to them this instability of the price of diesel is eating deep into their volume and margin.
Chinedu Anyaso, Chairman of of IPMAN Enugu, said the hike in the price of diesel will worsen inflation in the country.
Anyaso described the development as unhealthy, saying the hike portended stiffer hardship for Nigerians.
The price of the commodity went up about two weeks ago in Awka and its environs from N400 per litre to N650 per litre.
Diesel is the major source of energy for articulated vehicles, industries and hotels largely due to irregular public power supply.
Anyaso said the price hike of most refined petroleum products may not be unconnected with the rise in price of crude in the international market, arising from the Russian invasion of Ukraine.
He said the instability in prices was not good for IPMAN members and businesses generally.
“We are worried with the rise in the price of diesel and other petroleum products.
“The development is affecting our members because each time we go to depot to load, we see new price.
“It will certainly lead to general inflation because AGO is the major source of fuel for most transporters and manufacturing concerns across the country,” Anyaso said.
The Chairman of MAN Oyo, Osun, Ekiti and Ondo branches, Lanre Popoola, said in Ibadan Oyo State, over the weekend that it is now difficult for them to run their production facility in full capacity. “It is difficult to run production at this time, as diesel has gone up to N720 and N730 per litre.
“It is getting extremely difficult to produce and I don’t know how we are going to cope because 70 per cent of industries are running on diesel, there is no light.
“There is no power supply, we are having 30 per cent of what it used to be, whereas the disposable income of people is not increasing and the cost of products is going up.
“Even in my factory now, we are only running one shift instead of three shifts of eight hours each.
“Other businesses are also running limited hours on diesel as they cannot afford to use generators all day,” Popoola added.
The chairman noted that, if the situation persisted, it could lead to bigger issues that would further affect the nation’s economy and increase the hardship of Nigerians.
“The worst part is that diesel suppliers cannot agree for organisations to make a flexible payment plan such as installments, while they deliver the products in trust.
“They cannot again supply you with diesel and allow you to pay in two weeks. It is either you do cash and carry, or pay ahead because they too cannot predict the cost of the product,” he said.
