The implementation of 7.5 per cent Value Added Tax on Automotive Gas Oil(AGO), also known as diesel, has driven the product price from N600 to N950 per litre, oil marketers on Monday disclosed.
They also lamented the effect of the foreign exchange on the price of Premium Motor Spirit (PMS), even as they called on the Federal Government (FG) to promptly address the situation, which otherwise may further drive up the price.
The National President of Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), Bennett Korie, an umbrella body of suppliers, stakeholders and practitioners in the oil and gas downstream distribution chain, disclosed at a briefing in Abuja.
He said because diesel remains the fuel used for transporting petroleum products, this will affect the price of PMS.
On the other hand, he said there was a need for the Federal Government (FG) to swiftly address the price crisis occasioned by the rising dollar rate stating otherwise, the price of both products may go higher than the current prediction.
His words: “Before now, diesel was about N600 before they talked about tax on the diesel. The dollar rate has become very topical.
The whole thing is a mess, so we suggest that the government move into action on this dollar issue otherwise the price of diesel and petrol will go higher than what you see today.”
Korie suggested the Central Bank of Nigeria (CBN) needs to meet with stakeholders such as the Bureau De Change operators to create a uniform dollar rate acceptable to all.
“So the only way out is to take serious action. Call the BDC to sit with CBN and create one uniform rate that will be okay.
This is not our money. You can sit down and say if you want to sell to us, this is how much we will buy from you, and if you want to sell, don’t sell for more than this price. And that way, they can control the dollar.
“Yes, Mr. President said free, everybody should trade which is normal but the way it is going, it will destroy a lot of things for us,” he warned.