Manufacturers are grappling with the high cost of automotive gas oil (diesel), which consumes a significant portion of their profits, reaching up to 80%. The Director General of MAN, Segun Ajayi-Kadir, highlighted the challenges faced by manufacturers due to soaring production costs, emphasizing that they should not be blamed for raising product prices given these conditions.READ FULL ARTICLE>>>>
Ajayi-Kadir pointed out that diesel prices, currently at around N1,700 per litre, are a major burden for manufacturing firms in Nigeria. This high energy cost directly impacts their profitability, making it challenging to maintain competitive prices for their goods.
However, there’s some relief for manufacturers as Dangote Refinery has slashed the price of diesel by 29.4% to N1,200 per litre, down from around N1,700 per litre in the market. This reduction is significant and is expected to alleviate the burden of energy costs on manufacturers across various sectors.
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Alhaji Aliko Dangote, President of Dangote Group, highlighted the broader economic impact of high diesel prices on consumer goods. He explained that when diesel prices are high, the cost of production increases, leading to higher prices for essential goods like flour and other locally produced items.
The reduction in diesel prices by Dangote Refinery is seen as a positive step toward mitigating inflationary pressures in Nigeria. Lower energy costs for manufacturers could translate into more stable prices for consumer goods, benefiting consumers and businesses alike.READ FULL ARTICLE>>>>
