New VAT on Diesel pushes prices to N950 per litre – Marketers

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

The development has pushed local manufacturers to a point where they fear closure of some factories, which would result to 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 dollars was impeding their ability to import diesel.

The National President, 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.

Officials of the Nigeria Customs Service and Federal Inland Revenue Service had confirmed this in Abuja, stressing that AGO was not exempted from the payment of VAT based on the VAT Modification Order 2021.

Speaking at the press briefing on Monday, the NOGASA president said, “Diesel price is now approaching N900 to N950/litre depending on where you are buying it from. Before the introduction of VAT on diesel by the FIRS, diesel was around N650/litre.”

“This increase in price is also due to the scarcity of the dollars. The government has to intervene in this dollar situation. All bank CEOs, Central Bank of Nigeria and others must meet to address this dollar issue. The way it is going, it will destroy a lot of things for us if it is not controlled.”

Korie also called on President Bola Tinubu to get Nigeria’s refineries working. He said the pressure by marketers and other importers on dollars would reduce when Nigeria’s refineries start to pump out refined products.

“Our refineries were built by human beings and can be fixed by human beings. I believe Nigerian engineers can fix these refineries, instead of us depending on imports. This is not sustainable.

“We are piling pressure on the very limited dollars in the country by importing petroleum products and other commodities. But once our refineries start working, this pressure will drastically reduce. The government has to fix our refineries,” he lamented.

Punch/Hauwa Abu