Diesel hits N720 per litre as Nigerian manufacturers seeks intervention

Diesel hits N720 per litre as Nigerian manufacturers seeks intervention

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By Habila Darofai

Manufacturers Association of Nigeria, (MAN), is seeking urgent intervention Federal Government to support the production of goods, as diesel price hits N720 per litre across the country.

The chairman, Manufacturers Association of Nigeria, MAN, Oyo, Osun, Ekiti and Ondo branches, Lanre Popoola disclosed this in Ibadan on Sunday, while speaking on the increase of prices of petroleum products and lack of power supply.

According to him, It is a difficult thing ensuring production at this time, as diesel has gone up to N720 and N730 per litre in most of the State.

“It is getting extremely difficult to produce and I don’t know how we are going to cope because 70 percent of industries are running on diesel, there is no light.

“There is no power supply, we are having 30 percent of what it used to be, whereas the disposable income of people is not increasing and the cost of products are going up.

“Even in my factory now, we are only running one shift instead of three shifts of eight hours each.

“Other businesses are also running limited hours on diesel as they cannot afford to use generators all day, he said.

Popoola added that, if the situation persisted, it could lead to bigger issues that would further affect the nation’s economy and increase the hardship of Nigerians among other noting the worst part of diesel suppliers cannot agree for organizations to make a flexible payment plan such as instalments, while they deliver the products in trust.

“They cannot again supply you with diesel and allow you to pay in two weeks. It is either you do cash and carry, or pay ahead, because they too cannot predict the cost of the product.

“And I don’t blame them, imagine you bought diesel last week at N630 per litre and the next day it is sold for N730 per litre, how will you replace your stock,”

The chairman maintained that the way forward was for the government to come in and assist manufacturers, by giving some rebate on diesel, adding that, that was the only lifeline.

“Aside manufacturers, for transporters that are bringing food from the North or taking products to the East or Lagos, now the cost of their logistics would have doubled by 100 per cent if not 200 per cent.

“May be the government can come in and do a kind of palliative for us, it is either we have light 24 hours per week, to run our factories or do a palliative on diesel.

He lamented that Nigeria don’t produce diesel in this country, noted that if the refineries are working, it will be different ball game and country would have had it better now, if the refineries are working.

“So the more the international prices of Petroleum products go up, the higher the prices of what we are going to get from them,” he added.

Nigerian News