The Nigerian Gas and Oil Suppliers Association (NOGASA) has issued a call to the Federal Government, urging for the regulation of Automotive Gas Oil (AGO) diesel prices.
The association, represented by its National President, Bennett Korie, conveyed this message during a gathering in Abuja. Korie attributed the escalating costs of diesel and the soaring dollar exchange rate as key factors exacerbating the price volatility in petrol.
Expressing concern over the current situation, Korie cautioned that failure to address these issues promptly could lead to dire consequences for petrol marketers, potentially forcing many to cease operations before the end of February.
Korie emphasised the need for parity in the regulation of diesel prices akin to petrol, advocating for the sealing of pump prices for AGO. Drawing parallels with the stability maintained in petrol prices by the Nigerian National Petroleum Corporation Limited (NNPCL) since June, Korie urged the government to extend similar measures to diesel.
Furthermore, Korie urged the government to adopt a more realistic official exchange rate, proposing the utilisation of the N750/$ benchmark set in the 2024 budget to mitigate the ongoing exchange rate crisis.
Highlighting the apprehensions among private refineries, including modular ones, Korie pointed out their reluctance to commence production due to uncertainty surrounding pricing.
Moreover, Korie raised concerns regarding certain agencies, such as the Nigeria Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), which reportedly demand payments in dollars, exacerbating the forex challenges faced by stakeholders in the industry.
