Oil marketers have disclosed that the introduction of a 7.5 percent Value Added Tax (VAT) on Automotive Gas Oil (diesel) and the ongoing foreign exchange crisis in Nigeria have led to a significant increase in diesel prices.

The cost of diesel, also known as Automotive Gas Oil (AGO), has surged from N600 to between N900 and N950 per litre.

The inability of oil marketers to access United States dollars for imports has hindered the importation of diesel, thereby impacting its availability and cost.

Bennett Korie, the National President of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), emphasized the adverse consequences of the rising diesel prices.

ALSO READ: NMDPRA urges diesel consumers to embrace gas to reduce carbon emissions

He highlighted that the increased cost of diesel, which is used for transporting petroleum products, could influence the price of Premium Motor Spirit (PMS), commonly known as petrol.

Korie called on the Nigerian government to address the situation urgently and suggested that the Central Bank of Nigeria (CBN) should collaborate with stakeholders, including Bureau De Change operators, to establish a uniform dollar exchange rate acceptable to all.

He also advocated for the prioritization of modular refineries and the improvement of Nigerian roads to ensure smoother transportation of goods.

The oil marketers warned that failure to address these issues promptly could result in further disruptions to the supply and prices of diesel and other petroleum products, posing challenges to both businesses and consumers alike.