Market forces have begin to determine the price of diesel in the Nigerian market according to revelation by marketers.
Marketers have attributed recent drop in pump price of Auto Gas Oil (AGO) otherwise called diesel to deregulation of the product and competition among the players.
They claimed that each marketer imports diesel from different sources and competition among the marketers was responsible for the drop in pump price of the product.
When asked to react to claims by the Nigerian National Petroleum Corporation (NNPC) that it was solely responsible for the drop in price of the commodity, one of them said “NNPC is also a marketer and a major player in diesel importation and distribution. Because it pushes huge volume, it surely can influence product pricing by selling below cost price.
“That is why we recommend that the sector should be fully deregulated and allow NNPC and other marketers to operate on level playing field.
“The operating environment is not level at all. Do you know that at a time when a dollar was selling close to N500/$, the NNPC was subsidising premium motor spirit (PMS) otherwise called petrol. No other marketer can do that.”
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