Scarcity of Diesel, kerosene may worsen Nigeria’s inflation
An acute shortage in the supply of diesel and kerosene has hit filling stations nationwide, a situation which may fuel inflation on foods and other consumables if not averted quickly.
Imports of diesel and kerosene have been suffering hitches due to dollar scarcity, and resumption of production by local refineries is yet to bring respite, marketers say. Prices of the products, which have been deregulated, have continued to shoot up.
The recent statistics released by the Nigerian Bureau of Statistics showed that food prices and other consumables increased drastically due to increase in fuel energy. The cost of food in Nigeria increased 17.40 percent in December of 2016 over the same month in the previous year.
Most trucks used to transport foods and other consumables in the country are diesel powered and they transport about 95 percent of the goods due to the absence of rail system. In most cases the transporters or wholesalers factor in the cost of fuel to the goods they transport.