Key highlights
- The fuel price watch report by the National Bureau of Statistics shows that fuel prices are steadily increasing across states.
- Rivers, Ebonyi and Imo states witnessed the highest average fuel prices in February 2023.
- Lack of refining capacity as well as fuel distribution challenges are contributing factors to the rise of fuel prices in Nigeria.
Nigerians in Rivers, Ebonyi and Imo states paid the highest average fuel prices in February 2023, according to the latest premium motor spirit (PMS) price watch report released by the National Bureau of Statistics (NBS).
According to the report, Nigerians in Rivers state paid an average price of N323.33 per litre of fuel, which marked a 93.95% increase from February 2023.
Those in Ebonyi state paid an average price of N317.14 per litre of fuel, which is an 84.39% price increase from February 2022.
Also, Nigerians in Imo state, paid an average price of N316.47 per litre for fuel, which is an 84.79% price increase from February 2022.
More details on average prices across states:Â The report further disclosed that Jigawa also had one of the highest prices during the period under review at N329.17 per litre. Meanwhile, the states with the lowest average prices include Niger at N198.50 per litre, Plateau at N198.71 per litre and Abuja at N200 per litre.
The southeast had the highest average fuel prices across the geopolitical zones. According to the report, the average fuel price in the southeast was N306.86 per litre. In the Northeast it was N253.85 per litre, in the Northwest, it was N274.42 per litre. In the Northcentral it was N215.01 per litre, the Southwest paid an average of N299.32 per litre and South-south was N246.59 per litre.
Fuel prices are on an upward trend:Â Looking at how much fuel costs per litre as of February 2022, it is clear that fuel prices are on an upward trend. The NBS report shows that as of February 2022, fuel was sold at an average of N170.42 per litre. By July 2022, it was N190.01 per litre. Meanwhile, as of November 2022, fuel was sold at an average price of N202.48 per litre.
Fuel prices in Nigeria have become more expensive as months go by. This is mainly because the country has no refining capacity. Although the Buhari administration has acted to fix the country’s refineries, Nigerians are paying the price for lacking refining capacity. This is not likely to change anytime soon, because the refineries need time before they become operational.
Even the highly anticipated Dangote refinery will not be ready until 2024. In the meantime, Nigerians will have to keep dealing with rising fuel prices which are impacted by international factors especially as raw crude is taken out of the country to be refined.
Another factor is the capacity to effectively distribute fuel because of interstate factors that are connected to road networks as well as multiple taxations of truck drivers (both at the state and local government levels). These issues make marketers spend more and they will pass the cost burden on to final consumers.
What you should know:Â The NBS report states that the average retail price paid by consumers for fuel in February 2023 was N263.76, indicating a 54.76% increase when compared to the value recorded in February 2022 at N170.42.
- It is important to note that once the fuel subsidy is removed, Nigerians will pay even higher for fuel, thereby increasing the cost of transportation across the board as well as food prices in the open markets from which the majority of Nigerians purchase their food items from.
