Fuel Scarcity Drives the Price of Diesel to N550 Per Litre in Nigeria as Queues Persist 4 Weeks After
- Nigerians are lamenting the hike in the price diesel as it hits a 10-year high of N550 per litre on Monday
- Consumers lamented the impact of the price increase saying that it will further affect inflation in the country
- Oil price rose sharply in the international market as Russia continues its aggression in Ukraine making the US and its allies to mull the ban on Russian oil and gas
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Nigerians are groaning over the skyrocketing price of products and commodities in the country.
Legit market survey on Monday, March 7, 2022, shows that the price of Diesel has hit a 10-year high of N550 after selling for over N400 per litre in the past week.
Buyers interviewed by Legit lamented the ripple effect of the hike in petroleum products in the country.
Nigerians lament high cost of living
Michael Agwu, a businessman told Legit.ng in Lagos that what the price increase means is that it will further drive up inflation in the country.
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“We know that the price of crude oil has risen due to the Russia-Ukraine war but it should not impact heavily on the domestic market. What it also means is that household income will suffer, low-income earners will grapple to make ends meet.”
Job Nwokoye, a trader in Lagos said the increase will also affect the cost of transportation and general goods as traders ad money to recoup their profits.
According to Nwokoye
“I sell foodstuff in Lagos and I know how many times I have to increase the price because each time you got back to the market, the price has gone up.”
Russia's invasion of Ukraine pushes up crude oil price
As Russia’s invasion of Ukraine enters the second week, the international oil benchmark has risen sharply, putting pressure on the domestic oil market.
On Sunday evening, crude oil sold for $130 per barrel as talks about banning Russia from exporting oil gas to Europe and the US continue.
Diesel has been deregulated in Nigeria and the last time it soared this high was in 2012 during the subsidy protest under president Goodluck Jonathan.
Crude oil hits 13-year high, sells for $130 per barrel as western economies move to ban Russian oil
Legit.ng has reported that Nigeria may be in for a windfall as the escalating Russian invasion of Ukraine has driven crude oil to a 13-year high, selling at $130 per barrel.
The US crude soared about 7 per cent on Sunday evening as the market continued to react sharply to supply troubles amid Russia’s ongoing invasion of Ukraine and the thought that Russian oil and gas may be banned by the European and American markets, according to a CNBC report.
The international benchmark, Brent crude surged 8.4 per cent above $128.20, while Brent jumped to $139.13 at some point overnight, its highest since July 2008.