Oil marketers in Nigeria are calling for diesel prices to be reduced to N700 per litre to help fix the ongoing petrol shortage in the country. According to Benneth Korie Doi, President of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), the high cost of diesel is making it difficult to distribute petrol efficiently across the nation.
Nigeria has been facing a petrol shortage for more than six weeks. The Nigerian National Petroleum Corporation (NNPC) has said that the main issue causing this shortage is the challenge of getting petrol distributed properly. Since trucks that deliver petrol rely on diesel, high diesel prices make it much more expensive to move fuel around, worsening the scarcity.
Doi suggested that the NNPC should use its partnership with Dangote’s new refinery, which is expected to lower diesel prices due to local production and deals in the Nigerian currency, Naira. He believes this could help bring down transportation costs and make it easier to distribute petrol.
He also emphasized the need for a competitive market in the petroleum industry. He praised Dangote’s new refinery for its potential to boost supply, increase competition, and help strengthen Nigeria’s economy. Doi called for Dangote’s refined products to be made available to a wide range of stakeholders, including various fuel marketing associations and the NNPC, to ensure a steady and fair distribution of fuel across Nigeria.
Additionally, Doi stressed that the government should focus on addressing inflation, which he identified as a major problem for Nigeria’s economy. He suggested that investing in agriculture could help combat rising costs. By making farming more attractive and providing subsidies for agricultural tools and equipment, the government could help boost food production and lower food prices.
Improving the country’s infrastructure, like expanding railways for bulk cargo and ensuring better road conditions, is also essential for smoother logistics and transportation, Doi argued. He also highlighted the issue of excessive taxation on businesses, calling for a fairer tax system to support economic growth.
Reducing diesel prices, promoting competition in the petroleum market, investing in agriculture, and improving infrastructure are key steps Doi believes will help resolve Nigeria’s current fuel crisis and economic challenges.
Source: Vanguard
