Diesel price cannot be reduced under current exchange rate — MOMAN

The Major Oil Marketers Association of Nigeria (MOMAN) on Friday said that the pump price of diesel can not be reduced, until there is stability in the exchange rate of the naira.

Executive Secretary of MOMAN, Obafemi Olawore, disclosed this in Lagos.

Olawore said that as long as Naira and Dollar parity was not stable, it would be difficult to reduce the pump price of diesel.
“As at Jan. 27, the landing cost of diesel, using the exchange rate of N171.36 and the landing cost of diesel was N89.77.
“Using the exchange rate of N181.77, the landing cost of diesel was N96.87 and using the N200 exchange rate at present, the landing cost of diesel will be N100.98.
“If we are able to able to hold down the exchange rate, the investors will be able to plan.
“If we are not careful and the dollar continues to go up as it is doing, if it gets to N250 per dollar, there is no way government can reduce the price of diesel, without causing a further increase in the exchange rate,” he said.
The secretary said that if we were able to stop the gyration of the Naira the way it was going, we would have started the journey of stabilising the oil market and assisting the businessmen.
“By the time we are able to stabilise our Naira and there is constant supply of electricity, we will be keeping the cost of the product at a level that many people can afford the price.
“If we put heads together, we will come to one thing, that is our economy will be stabilised, then we need a discipline manager to put all things together,” he said.
Olawore, however, said that the price of oil would rise again and urged government to use the earnings to put up projects that would benefit the nation.



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