Diesel Gulping 80% of Manufacturers’ Profits

The manufacturers are lamenting the high cost of automotive gas oil also known as diesel, which is used to generate power for their operations, noting that the product gulps about 80 percent of their profits.

Speaking on the plight of manufacturers against the backdrop of rising prices of their products, the Director General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said manufacturers should not be blamed for inflating prices of products, considering their high cost of production.

However, a bit of relief may have come the way of the manufacturers following the recent crash of the price of diesel by 29.4 percent by Dangote Refinery.

The refinery now supplies the product at a substantially reduced price of N1,200 per litre, representing a 29.4 percent reduction from the previous market price of about N1,700 per litre.

On the high cost of energy, Ajayi-Kadir stated that the association has informed the government and relevant agencies on what to do to bring down these inimical worsening high operating costs in the country.

He urged Nigerians not to blame local manufacturers for increasing the cost of goods, as they are being confronted with debilitating conditions.

H explained that diesel is taking 80 percent profit of surviving manufacturing firms in Nigeria currently at the rate of about N1,700 saying no manufactHASrer can cope with the astronomical price for energy to produce without increasing products price.

You will recall that the President of   Dangote Group, Alhaji Aliko Dangote, recently confirmed that his refinery is offering diesel at N1,200, below the market rate of N1,700, adding that the significant cut in the price will have a positive effect on inflation in Nigeria