The cost of Automotive Gas Oil, popularly called diesel, is heading for N1,100/litre as a result of the continued depreciation of the naira against the United States dollars, oil marketers said on Tuesday.

Dealers of the commodity also explained that the recent hike in the cost of crude oil had contributed to the skyrocketing price of diesel.

To address this, they called on the Federal Government to intervene in the matter, considering the industrial significance of AGO.

The National President, Natural Oil and Gas Suppliers’ Association of Nigeria, Benneth Korie, raised the alarm on the incessant rise in the price of AGO in Abuja. He stated that it was becoming difficult for suppliers to access the product.

He disclosed this in a statement issued by NOGASA, and explained that the development was making it tough for marketers to access loans from Deposit Money Banks to run their business.

“This incessant rise in prices is also evidently causing hardship for the haulage of products by transporters and for commuters alike,” Korie stated.

He added, “NOGASA is worried about the ugly development and is trying to understand why the price of diesel is going for as high as N950 to N1,100/litre as of today in the market, with a view to moderating the price and shocks in the economy.

“However, the price of crude oil as of today is $95/barrel and the dollar is racing towards N1,000. Consequently, Nigeria’s refineries should be given emergency attention by government to forestall the nose diving of the economy.”

Korie urged the Federal Government to intervene before the high cost of diesel would severely impact on industries and kill the businesses of marketers in the downstream oil sector.

He, however, stated that oil marketers would meet in October to take adequate steps towards finding lasting solutions to the problem, and promised NOGASA would continue to ensure availability of products across the country.

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