The pump price of Automotive Gas Oil, also known as diesel, may be set for further increase as the Major Oil Marketers Association of Nigeria says its landing cost rose to N336.45 per litre.
This is barely weeks after fuel marketers had increased the price of diesel, to N320 per litre as the further rise in global oil prices and naira depreciation pushed up the cost of importing fuel into the country.
The price of diesel, which is not regulated by the government, has surged by over 46 per cent so far this year from an average price of N225 per litre in January.
The Executive Secretary/Chief Executive Officer, Major Oil Marketers Association of Nigeria, Mr Clement Isong, in his presentation at the 15th OTL Africa Downstream Week 2021 in Lagos on Wednesday, said as of Tuesday, a member of the association was able to bring diesel into the country at a landing cost of N336.45 per litre while the landing price was N338.78 per litre.
“What you land your diesel at is a function of how much you get your US dollars, more than anything else. Diesel in Nigeria is deregulated; it is still the cheapest in the African region,” he said.
The price of crude oil accounts for a large chunk of the final cost of petroleum products, and the recent increase in oil prices means that the landing cost of imported fuel will rise.
