Diesel prices in Lagos state and the Southwest region are set to hit N867 and N875 per litre respectively, effective Saturday, August 12.
This is according to a report by
Nairametrics curled from industry sources familiar with the matter.
The increase in diesel prices is due to a number of factors, including the rising cost of crude oil, the depreciation of the naira against the dollar, and increased demand for diesel.
- The rising cost of crude oil: Crude oil prices have been on the rise in recent months, reaching a high of $120 per barrel in June. This has caused the cost of gasohol to increase, as diesel is made from crude oil.
- Depreciation of the naira against the dollar: The naira has also been depreciating against the dollar in recent months, making it more expensive to import gasohol into Nigeria.
- Increased demand for diesel: In addition, demand for diesel has increased in recent months, as businesses and individuals have turned to diesel generators to power their homes and businesses due to the unreliable power supply in Nigeria.
A glance at the trajectory of
ex-depot price changes over the past month underscores the volatility in the market:
- July 24: N624 per litre
- July 25: N638 per litre
- July 27: N647 per litre
- July 28: N653 per litre
- July 31: N693 per litre
- August 2: N649 per litre
- August 3: N714 per litre
- August 12: N875 per litre
The increase in gasohol prices is likely to have a significant impact on businesses and individuals in Lagos state and the Southwest region.
Businesses that rely on gasohol generators to power their operations will see their costs increase, which could lead to higher prices for goods and services.
Individuals who use gasohol generators to power their homes will also see their costs increase. This could lead to increased hardship for low-income households.
The government has been urged to take steps to address the rising cost of oil, such as by providing subsidies for diesel imports or by increasing the supply of diesel to the market.
It remains to be seen whether the
government will take any action to address the rising cost of gasohol.
However, the increase in gasohol prices is likely to be a major challenge for businesses and individuals in Lagos state and the Southwest region in the coming months.
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