Diesel Price Jumps To N280, LCCI says Inflation’ll Rise

The price of a litre of Automotive Gas Oil, also known as diesel, has risen to N280, buoyed by the recent increase in global oil prices and naira devaluation.

Meanwhile, on February 24, 2021 that some filling stations in Lagos had increased diesel price to N250 per litre, while many others sold it at between N220-N245 per litre.

The global oil benchmark, Brent crude, which averaged $62.28 per barrel in February, stood at $75.10 per barrel as of 5:15pm Nigerian time on Monday.

Our correspondent observed on Monday that the price of the product, which is not regulated by the government, ranged from N270 to N280 per litre in several filling stations in Lagos.

Mobil, Capital Oil and Gas as well as Oando filling stations, all along the Lagos-Ibadan Expressway, sold the product for N280, N279.9 and N275 per litre. The product was sold for N267.50 per litre at NNPC Retail stations.

Diesel is mostly used by businesses to power their generators amid lack of reliable power supply from the national grid.

He noted that purchasing power had been weak and the exchange rate of the naira to the dollar had depreciated sharply.

Last month, the Central Bank of Nigeria devalued the naira as it adopted the NAFEX exchange rate of N410.25 per dollar as its official exchange rate, days after removing the N379/$ rate from its website.

The naira fell to 502/$1 on Monday at the parallel market from 500/$1 on Friday.

“There is foreign exchange market illiquidity. The cargo clearing at our seaports is a nightmare. The security situation has inflicted an elevated risk to investment,” Yusuf said.

According to him, diesel cost also has profound implications for transportation and logistics costs.

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