Oil suppliers are expressing their concerns as the foreign exchange crisis and the implementation of a 7.5 per cent Value Added Tax on Automatic Gas Oil, popularly known as diesel, have driven up its cost to between N900 and N950 per litre in many states.
Beneth Korie, the National President of the Natural Oil and Gas Supplies Association, revealed this to journalists on Monday.
Korie highlighted that Nigeria’s heavy reliance on importing diesel and fuel has put immense pressure on the Naira, exacerbating the forex crisis. He called upon President Bola Ahmed Tinubu to take immediate action by revitalizing Nigeria’s refineries to reduce this dependence on imports.
Furthermore, Korie urged the president to intervene in the ongoing forex crisis in order to halt the upward trajectory of diesel prices.
“Diesel prices are now nearing N900 to N950 per litre, depending on the location of purchase. Prior to the introduction of the VAT on diesel by the FIRS, the price was around N650 per litre,” he stated.
“Our refineries were constructed by human beings and can be repaired by human beings. Nigerian engineers possess the skills to fix these refineries, rather than relying on imports. The current situation is not sustainable,” he added.
It is worth noting that since the Central Bank of Nigeria floated the Naira in June, the country’s currency has continually weakened against the dollar, with the parallel market exchange rate standing at N950/$1.
However, on Monday, the CBN vowed to crack down on forex speculators as part of its efforts to address the crisis.
