Diesel price hits N950/litre, manufacturers fear shutdowns, job losses 

Oil marketers, on Monday, said the foreign exchange crisis in Nigeria and the recent implementation of a 7.5 percent Value Added Tax on Automotive Gas Oil, popularly called diesel, had pushed up the cost of the commodity to between N900 and N950/litre in many states.

The development has made local manufacturers say that the situation may lead to the closure of some factories and job losses. Speaking under the aegis of the Natural Oil and Gas Suppliers Association of Nigeria at a press briefing in Abuja, the marketers explained that their inability to access the United States dollars was impeding their ability to import diesel. The National President, of NOGASA, Benneth Korie, told journalists that the cost of diesel was around N650/litre before the Federal Government introduced a 7.5 percent VAT on the commodity. On June 20, 2023, The PUNCH reported that the Federal Government had commenced the implementation of the payment of 7.5 percent VAT on diesel. Officials of the Nigeria Customs Service and Federal Inland Revenue Service confirmed this in Abuja, stressing that AGO was not exempted from the payment of VAT based on the VAT Modification Order 2021.

Punch