CEM REPORT | President of Premium Bread Makers Association of Nigeria, Emmanuel Onuorah while speaking with Daily Trust in Lagos Thursday, urged the government to reverse the price of diesel or face a shutdown.
Onuorah said all their machines such as the mixer, oven and other machines are powered by diesel.
“Diesel is what we use in running our generators, diesel is what we use in running our oven. What we were buying N350 is now about N850 in less than a week,” he noted.
Bread makers are not the only industry suffering from the sudden hike in diesel price. Price of the product had spiked leaving manufacturers to grapple with high overhead which drastically erodes margin and threaten their sustenance.
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CEM reported Tuesday of the increment in printing services as a result of the increased diesel price as that industry in particular rely largely on generators if they must meet up with schedule to avoid costly disappointments.
Sunday 14th, Lanre Popoola, the Chairman, Manufacturers Association of Nigeria (MAN), Oyo, Osun, Ekiti and Ondo branches, called for urgent intervention from the Federal Government to support the production of goods, as diesel price hits N720 per litre. This call is yet to receive response from the government.
Unlike PMS, the importation and retail sale of diesel in Nigeria is entirely in the hands of private individuals with little or no government interference. Therefore, the market price is determined by landing cost per liter of the product which is also determined by international market factors.
Until there is a reversal of the factors responsible for the current price levels, this may persist.