The Nigerian Gas and Oil Suppliers Association (NOGASA) has urged the federal government to implement price regulation on Automotive Gas Oil (AGO) diesel, proposing to cap its pump price similar to that of petrol.
Chief Bennett Korie, the association’s national president, made this call in Abuja yesterday, attributing the increasing cost of diesel and the high dollar rate to the escalating petrol price.
He cautioned that if the Federal Government does not address these challenges, it will inevitably lead to the liquidation of petrol marketers before the end of February 2024.
Korie emphasized, “Fix that diesel problem, then PMS will be stable. If NNPCL will keep the PMS Price from June to date, is there anything wrong with doing it for AGO?”
To address the worsening exchange rate crisis, Korie urged the government to adopt the N750/$ 2024 Budget exchange rate benchmark as its official exchange rate.
He disclosed that many private refineries, including modular ones, are hesitant to commence production because they are uncertain about the fixed price.
Korie highlighted that some agencies, such as the Nigeria Ports Authority and the Nigerian Maritime and Administration and Safety Agency (NIMASA), still collect payments in dollars, exacerbating the forex challenge.
He called on the government to intervene in bank interest rates, which also contribute to the current challenging business environment in the country.
Additionally, Korie advised the government to conduct all its domestic crude oil transactions in Naira to alleviate the scarcity of dollars.
Sunday Michael Ogwu, From The News Source: DailyTrust
