The average retail price of Automotive Gas Oil (Diesel) paid by consumers rose by 59.51% year-over-year, increasing from N840.81 per litre in March 2023 to N1341.16 per litre in March 2024.
On a month-to-month basis, the price climbed by 6.69% from N1257.06 in February 2024 to N1341.16 in March 2024.
State and regional breakdown
Examining state-level price variations, the highest average prices in March 2024 were found in Edo State at N1566.67, Jigawa State at N1533.33, and Cross River at N1532.71. Conversely, the lowest prices were recorded in Plateau State at N1067.25, Niger State at N1140.00, and Adamawa State at N1175.00.
The regional breakdown of the average price for Automotive Gas Oil (Diesel) reveals that the South South Zone recorded the highest price at N1419.35, whereas the North Central Zone registered the lowest price at N1230.98, compared to other zones.
Recommended reading: Reduction of diesel price to N1,200 will lower Nigeria’s inflation rate – Dangote
What you should know
The price of diesel has increased significantly since the middle of last year to cross the N1000 per litre mark.
Following the rise, the federal government in October last year suspended the 7.5% Value Added Tax (VAT) on diesel for six months as a measure to cushion the effect of the fuel subsidy removal and tame the rising cost of living crisis.
However, the six months VAT waiver ended as of March 31st, 2024 and the federal government has not disclosed its next course of action.
The Dangote refinery recently started distribution of AGO to petroleum marketers across the country- a move that will end the country’s dependence on importation of AGO.
A few days ago, the Dangote refinery stated it has crashed the price of diesel to N1000 per litre as it began distribution across the country. However, members of the public have not been able to independently verify the gesture and how its market feasibility to determine long-term sustainability.
