Artificial scarcity of diesel pressures prices


Artificial scarcity has hit the diesel market with depot prices souring to between N252 and N258 last weekend, Vanguard reports.

Investigations show that depots around Apapa and Ibafon areas now sell diesel at an exorbitant price of 252/litre. A source at Ibeto Jetty said that scarcity of the product is the cause of the current increase in price, as most depots are dry. He also said that the price jump has nothing to do with foreign exchange (FOREX).  “It is an artificial price increase caused by low supply or stock hoarding,” he said.

“Oando, MRS and Total bought the last set of AGO that were brought on December 14, 2016. Prices would likely go up till new stock arrives. I haven’t seen this kind of price rise for AGO in the depot. It’s very strange,” he added. “We at Ibeto have AGO, so we seized that opportunity to increase the price to be able to meet up the current hardship in the country. As at last Wednesday, we sold the product at N250, now we are selling at 252/litre,” he said.