Following the fluctuations in forex and international crude oil prices, the ex-depot price of diesel has dropped by over 30 per cent between February and June 2017, THISDAY reports.
As a deregulated product, the price of diesel is controlled by the market forces of demand and supply, unlike petrol, which has a price cap. It was gathered that with the international market price of crude above $53 in February, the prices of refined products were also high as the ex-depot price of diesel was between N225 per litre and N235. The situation, it was gathered, was worsened by the high exchange rate at the period, which also impacted on the landing cost of products.
However, at the beginning of June, the depots were selling between N152 and N154 per litre, while the pump price was below N200 per litre at the beginning of June. The price of diesel dropped further at the weekend with depots in Lagos selling at N155, 149, 147, 145, 144, and 144.50. A marketer, who spoke on the situation, said the development was cyclic as a result of changing prices at the international market and forex fluctuations.