The price of a litre of Automotive Gas Oil, also known as diesel, has risen to N280, buoyed by the recent increase in global oil prices and naira devaluation. The PUNCH had reported on February 24, 2021 that some filling stations in Lagos had increased diesel price to N250 per litre, while many others sold it at between N220-N245 per litre. He noted that purchasing power had been weak and the exchange rate of the naira to the dollar had depreciated sharply. Last month, the Central Bank of Nigeria devalued the naira as it adopted the NAFEX exchange rate of N410.25 per dollar as its official exchange rate, days after removing the N379/$ rate from its website. He said the government should be able to mitigate the rise in diesel price, adding, “Yes, we know that it has been deregulated but then government should also be aware that there are certain price hikes that can kill industries, particularly small and medium enterprises.”Egbesola, who noted that the incomes of many Nigerians had been eroded by inflation, said the diesel price hike would cause increases in the prices of commodities.

Source: Punch June 28, 2021 23:48 UTC