Cost of Automated Gas Oil (AGO) known by the layman as Diesel has been drastically cut down by 42% as announced by The Nigerian National Petroleum Corporation (NNPC).
The group general manager, group public affairs division of the corporation, Ndu Ughamadu made the news public over the weekend. The price of Diesel has now gone from N300 to N175-N200.
“It would be recalled that in the first quarter 2017, retail prices of AGO, which is one of the deregulated products, shot to an all-time high of N300/litre in major demand centres across the country.
“Such unpleasant situation placed a huge burden on truck drivers, who need the product for transporting their vehicles; the nation’s manufacturing sector, which requires it to run its operations as well as on the masses, who need it for household power generation.
“However, following strategic intervention efforts by the NNPC towards sustained improvement in the supply of the diesel, the product’s retail prices as at the end of May 2017 ranged from N175 to N200 across the country (a significant price drop of about 42%), while ex-depot prices also dropped to between N135 and N155.”
“Since January this year, we have worked very hard with relevant stakeholders to improve distribution from refinery depots, by implementing a robust loading programme.”
“Another key intervention that has enhanced supply and distribution of diesel was the corporation’s robust engagement with critical downstream stakeholders where salient issues were raised and duly addressed.
These stakeholders include: Major Oil Marketers Association of Nigeria (MOMAN), Nigerian Association of Road Transport Owners (NARTO), Petroleum Tanker Drivers (PTD) as well as Independent Petroleum Marketers,” the statement read.
“Furthermore, as a result of consistent positive engagement with the Central Bank of Nigeria (CBN), NNPC equally extended the expansion of Premium Motor Spirit (PMS) Foreign Exchange Intervention Scheme to accommodate diesel and aviation fuel.”