(Ecofin Agency) - The ex-depot price of diesel dropped by more than 30% between February and June this year due to the instability in forex and crude oil prices in the global market.

Unlike petrol which has a price cap, the price of diesel is being controlled by market forces of demand and supply. With the global market price of crude above $53 in February, the prices of refined products also rose making the ex-depot price of diesel to be between N225 per litre and N235.

However, at the start of this month, depots were selling the product between N152 and N154 per litre.

“The price of crude and exchange rate in February were on the high side and they impacted not only on the price of diesel but all other products. Nigerians did not feel the impact on petrol because of the price cap. With the drop in price of crude below $50 per barrel, the country is not seeing the benefits of liberalization on diesel,” a marketer with knowledge of the situation said.

Anita Fatunji