Key highlights
- Nigerians paid an average of N836.91 per liter for diesel in February 2023, a 168.2% increase from the previous year.
- Edo, Bayelsa, and Katsina states paid the lowest average prices for diesel in February 2023, while Bauchi, Abuja, and Adamawa paid the highest.
- Sub-Saharan Africa’s reliance on diesel imports and the ongoing Russian-Ukraine war and sanctions could lead to a diesel scarcity, which could further increase diesel prices in Nigeria, especially for diesel-reliant businesses.
Nigerians spent an average of N836.91 per liter on diesel supply for the month of February 2023 up by 168.2% from N311.98 per liter a year earlier.
Households and businesses in Edo, Bayelsa and Katsina states paid the lowest average prices for diesel in February 2023. This is according to data from the latest diesel price watch report from the National Bureau of Statistics (NBS).
According to the report, residents in Edo paid an average of N789.43 per liter, which is a 111.54% increase from February 2022. Meanwhile, those in Bayelsa paid an average of N767.14 per liter which is a 155.71% increase from February 2022. Also, residents in Katsina paid an average of N778.75 per liter, which is a 147.91% increase from February 2022.
States with the highest prices of diesel
According to the NBS report cited, some states paid the highest prices during the period highlighted. It stated further that people in Bauchi state paid an average of N904.33 per liter, those in Abuja paid an average of N885 per liter and people in Adamawa paid an average of N873.33 per liter.
Looking at prices across geopolitical zones, revealed that North-central paid an average of N850.65 per liter, North-west paid N820.62 per liter, North-east paid N848.53 per liter, South-east paid N840.48 per liter, South-west paid N847.60 and the South-south paid N814.63 per liter.
Local diesel prices are rising as experts project diesel scarcity
In February 2022, Nigerians paid an average of N311.98 per liter for diesel. By May 2022, they were paying an average of N671.08 per liter. By December 2022, they were paying an average of N817.86 per liter.
According to a February 2023 report by S&P Global Commodity Insights, Sub-Saharan Africa lacks sufficient refining capacity and therefore is highly dependent on imports. The region needs to import nearly 700,000 barrels per day of diesel, which is 80% of its needs. However, there is a looming diesel scarcity occasioned by the Russian-Ukraine war and sanctions. Part of the report said:
- “Uncertainties for the supply of products to Africa abound. The embargo on Russian oil products imposed on 5 February 2023 means that diesel supply trades to African markets will require some reconfiguration, and this comes with risks. Although Africa does not import material diesel volumes from Russia, Russia is a major diesel exporter to Europe. West African markets are highly dependent on Europe, which soon will lose considerable volumes of Russian crude and diesel imports.”
What you should know
Nigeria, being one of the largest economies and energy consumers in sub-Saharan Africa, could be significantly affected by a potential diesel scarcity or increase in diesel prices.
Diesel is a critical energy source for many businesses in Nigeria, including transportation, manufacturing, and agriculture, among others. Any disruption in the supply of diesel could result in higher costs for businesses, which could ultimately impact the prices of goods and services in the country.
The government may also have to consider measures to mitigate the potential impact of a diesel shortage, such as increasing local refining capacity or diversifying its energy sources to reduce dependence on diesel imports.
