Manufacturers lament as diesel price hits N1,300 per litre

As the price of diesel has risen to N1,275 per litre in Lagos and over N1,300 per litre outside the state, manufacturers have expressed concern.

According to Daily Trust, the product is priced at N1,270 per litre in Kano State, which is higher than the rate outside the capital.

This signifies a price escalation of 26 percent for the product within a time frame of less than one week. It had been sold on October 23 for N1,030.

Numerous petrol stations in Lagos have increased their prices by N1,250 to N1,270 as of yesterday.

Manufacturers, who still face a foreign exchange crisis, high interest rates, and inadequate power supplies, are concerned that the increase in diesel prices could exacerbate their difficulties, given that their factories are powered by diesel.

As a result of the situation, which has worsened into a cost of living crisis for many families and households, inflation has reached its highest point of 26.7 percent in October.

The increase in diesel prices, according to stakeholders, portends greater peril for the general populace, which is already enduring the brunt of high inflation.

An proprietor of a bakery, Ibrahim Nagode, remarked, “The cost continues to rise daily. “At a specific price in the morning, it is available for purchase; however, by evening, the price has been modified.”

“We had intended to purchase diesel yesterday and had factored the previous purchase price into our budget,” said a second source. “However, we were informed that the price has increased to N1,275.”

There are concerns that the price of diesel at the tap outside the Kano metropolitan area has surpassed N1,400 per litre.

Commenting on the situation, Ilya Nazifi, chief executive officer of Golden Rice Mill, stated that production costs and prices of finished products would undoubtedly increase to the extent that power and logistics are disrupted.

Wada Jamilu, a transporter based in Lagos, estimated that a caravan would need to burn diesel worth N1.5 million to travel from Kano to Lagos and return due to the increased cost of the product.

He stated that caravan proprietors would be required to increase their transportation costs.

Abdulrasheed Olapade, an oil marketer, observed that diesel has been deregulated for quite some time and that its price is determined by the global market.

“At the time of our conversation, the terminal price exceeds N1,275; furthermore, transportation costs would increase the total. More so since deregulation, it is now determined by the global market, and the value of the dollar has increased as a result. We are in a precarious situation due to the dollar’s current price.”

Inuwa Abdullahi, a member of the National Association of Road Transport Owners (NARTO), stated that the association is being severely impacted by the high price of petroleum.

“Considering the price of diesel fuel, the number of checkpoints conducted by state and non-state actors, the poor condition of the roads, and the exorbitant cost of spare parts, a journey that normally costs a truck N500,000 would now cost around N2 million,” he explained.

“As a driver, you will ultimately be left with nothing to take home with you.” We are simply struggling as the price of diesel continues to rise.”

Factories might cease operations.

Emmanuel Onuorah, president of the Premium Bread Makers Association of Nigeria, stated that the increase in petroleum prices could potentially result in the closure of factories.

Because of the increase in price since Monday. This implies that, as bakers, we must continue to raise our prices. In order to recoup our expenses, we would continue to invest additional funds into our product so long as everything continues to rise.

“You are prohibited from doing anything else. Today, flour costs about N43,000. They would daily allocate between N5,000 and N10,000 to a single line item.Both manufacturers and industries will cease operations.

“At the moment of our conversation, I am seated in my factory. Each individual will draw closer. Individuals who are unable to repeat the activity will gather their belongings and depart. It is difficult. “A crisis is imminent,” he predicted.

Adams Adebayo, chairman of the National Association of Small and Medium Enterprises in Lagos State and a professor of Entrepreneurship Development, cautioned that the escalating price of petroleum poses a grave threat to the economy.

“The economy is in a severe shambles,” he declared. This is the worst it has been in the past two decades. This is the most catastrophic event in history. If the price of diesel has increased, then virtually everyone has been impacted.

“We are planning to implement a complete shutdown of all manufacturers at this time.” There would be issues unless the government subsidised the power and directed the electricity distribution companies to supply the manufacturers at a rate under its control.

“It makes no difference if the price of diesel reaches N3,000; as long as the government’s energy supply remains stable, there is no necessity to purchase diesel, with the exception of logistics users whose operations would be impacted.”

“Prior to the May 29 inauguration of this administration, diesel was priced at N670 per unit.” Since today, November 1st, diesel has cost N1,256. Small enterprises are encountering significant challenges.

“The government must step up and establish a board to regulate all of these vital commodities, including diesel, petrol and fuel, because if it does not, the price of petrol will increase and households will be unable to use it again,” he said.