The price of diesel, which is not regulated by the government, has surged by over 24 percent on the back of the soaring price of Brent crude, dollar price, and the forces of demand and supply, sources said.

From haulage to consumer goods, retail outlets, and small businesses, all are coming under pressure as the retail cost of diesel at various filling stations jumped by 24 percent to N410 per litre in February,

Unlike petrol, diesel is deregulated, which means the increase in the international price of crude oil is responsible for what we see across Nigerian filling stations,” Mike Osatuyi, national operations controller of Independent Petroleum Marketers Association of Nigeria (IPMAN), said.

Crude oil price accounts for a large chunk of the final cost of petroleum products such as diesel, kerosene, and such associated products.

Removal of subsidy on kerosene and diesel by former President Olusegun Obasanjo means that the pump prices of the products will reflect changes in the international oil market.

Brent crude, the benchmark for Nigeria’s crude oil has gained more than 28percennt to $91 on February 09, 2022.

“We bought diesel at N410 today and this has affected the cost of checking-in to our hotels and short let apartments,” Azeez Raji, Manager of Urban Metro Inn, who runs on diesel to sustain his business.

Esu Olumba-Obu, the Group managing director of Royal Farms Ltd says the high cost of diesel is posing serious threats in sustaining the group business.

“The high cost of diesel most businesses are now faced with the option of closing down or retrenching staff to survive,” Olumba-Obu said.