Diesel price drops on back of improved power supply

The demand for diesel has reduced significantly over the past few weeks, causing the price of the product to drop by 6.05 percent. This follows a significant increase in power supply levels across the country, from the national grid, in the same period.

Diesel, which sold weeks back, for N165 per litre at fuel stations, now sells for N155, a drop of N10 per litre, a positive development for users and a pain for importers. Many parts of the country have in recent times experienced improved power supply. Only on Tuesday, the country hit a record level of 4,477 megawatts in power generation.

The new peak exceeds the record level of 4,337 megawatts, achieved on Monday, August 6,  this year, by 240 megawatts. Before then, it was about 3,800 megawatts. The improved electricity supply, according to industry insiders has been as a result of increased gas supply to the power generating stations, the strengthening of distribution networks and transmission lines, and the fact that some of the National Integrated Power Projects have started contributing to the national grid.

Bart Nnaji,  minister of Power, has attributed the sharp increase to gas availability, and praised the Nigeria Gas Company (NGC),adding “gas is coming up gradually and when fully stabilised, we can easily hit 5,000MW.” Strengthening this position, are the additional distribution networks which have come on stream in some strategic locations across the   country.

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