THE price of Automotive Gas Oil, also known as diesel, has been increased to N320 per litre by marketers 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 40 per cent so far this year from an average price of N225 per litre in January.
The product was sold for between N275 and N290 per litre at some filling stations in Lagos in the month of July.
According to news reports yesterday, the price of diesel ranged from N303 to N320 per litre at several filling stations in Lagos.
Total, Mobil, Oando and Capital Oil and Gas filling stations, all along the Lagos-Ibadan Expressway, sold the product for N320, N315, N305 and N304.50 per litre respectively.
Consumers have expressed fear that the spike in diesel price might force more businesses to sack employees amid rising energy costs.
Diesel is mostly used by businesses, especially manufacturers, to power their generators amid a lack of reliable power supply from the national grid. Many vehicles transporting goods and people across the country also use diesel.
Crude oil price accounts for a large chunk of the final cost of petroleum products, and the further increase in oil prices means that the landing cost of imported fuel will rise. Oil prices have extended their rally in recent days. The international oil benchmark, Brent crude, rose to as high as $83.47 per barrel yesterday (Wednesday), its highest since October 2018, but fell to $80.95 per barrel as of 5:30pm Nigerian time.
