The Nigerian Gas and Oil Suppliers Association (NOGASA) is advocating for government intervention to regulate the price of Automotive Gas Oil (AGO) diesel, suggesting a price cap akin to that of petrol.
Chief Bennett Korie, NOGASA’s national president, emphasized the need for action during a meeting in Abuja, attributing the diesel’s escalating costs and petrol price hikes to the high dollar rate.
Expressing concern over the consequences of inaction, Korie warned of potential insolvency among petrol marketers by the end of February 2024 if the challenges persist.
Korie asserted, “Address the diesel issue, and petrol prices will stabilize. If NNPCL can maintain petrol prices since June, why not do the same for AGO?”
In response to the currency crisis, Korie urged the government to adopt the N750/$ 2024 Budget exchange rate as the official rate to mitigate further economic strain.
He noted the reluctance of private refineries, including modular ones, to commence production due to pricing uncertainty.
Highlighting additional challenges, Korie criticized agencies like the Nigeria Ports Authority and the Nigerian Maritime and Administration and Safety Agency (NIMASA) for exacerbating the forex situation by insisting on dollar payments.
He urged government intervention in bank interest rates, citing their contribution to the unfavorable business climate.
Furthermore, Korie recommended conducting all domestic crude oil transactions in Naira to alleviate the dollar shortage.
