images (1) downloadThe Major Oil Marketers Association of Nigeria (MOMAN) has kick against the reduction of the price of automotive gasoline (AGO), otherwise known as diesel, under the current exchange rate at the foreign exchange market where one dollar exchanges for N205.

The group insisted that any reduction in price of the product will only happen when the exchange rate of naira stabilizes.

Executive Secretary of MOMAN, Obafemi Olawore, who disclosed this in Lagos over the weekend said that as long as naira and dollar parity was not stable, it would be difficult to reduce the pump price of diesel.

“As at Jan. 27, the landing cost of diesel, using the exchange rate of N171.36 and the landing cost of diesel was N89.77. Using the exchange rate of N181.77, the landing cost of diesel was N96.87 and using the N200 exchange rate at present, the landing cost of diesel will be N100.98.

If we are able to hold down the exchange rate, the investors will be able to plan.

If we are not careful and the dollar continues to go up as it is doing, if it gets to N250 per dollar, there is no way Government can reduce the price of diesel, without causing a further increase in the exchange rate,” he said.