The price of Automotive Gas Oil, popularly referred to as diesel, has soared by 66.29% year to date (YTD) to over N1,403 as of May 2024.
This is according to data from the National Bureau of Statistics (NBS).
The Diesel Price Watch report indicated that diesel, which was selling for N844.28 in May 2023, rose to N1,403.96 in May 2024.
However, on a month-to-month basis, the price saw a slight decline from N1,415.06 in the preceding month (April 2024) to an average of N1,403.96 in May 2024, showing a 0.78% decline in one month.
Breakdown of the Report by States
At the national level, there are a couple of variations in prices along geopolitical zones with the Northeast retaining its position as the zone with the most expensive price of diesel.
The average price of the commodity in the Northeast stands at N1,605.91 in May 2024 as opposed to the N908.02 as of May 2023.
Meanwhile, consumers pay the lowest for diesel in the Southwest, with an average price of N1,303.60 in May 2024. This is a 56.23% increase from May 2023 when diesel stood at N834.56.
- At the state level, the top three states with the highest average price of the product in May 2024 are Adamawa State at N1709, Sokoto State at N1675 and Bauchi at N1657.92.
- These states stand out for having the highest average prices compared to others in the same period.
- On the other hand, the top three lowest prices were recorded in the following states: Niger State at N1140.20, Kano State at N1153.33, and Oyo State at N1236.92.
- These states represent the regions where the product was priced lowest compared to others in May 2024.
- Niger State registered the lowest average price at N1140.20, followed closely by Kano State at N1153.33 and Oyo State at N1236.92.
What you should know
Despite Nigeria being a top producer of crude oil in Africa, the country heavily relies on imported refined products such as petrol, diesel, and aviation fuel for its consumption.
This dependency exposes these commodities to international market pricing and external factors affecting global trade.
Meanwhile, Nigeria operates at least three refineries that have remained inactive for decades, unable to refine a single drop of crude oil.
The inception of the Dangote refinery, described as an industry “game changer,” is expected to have a positive impact on petroleum commodity prices, including PMS and diesel.
In April, the refinery commenced supplying its first batch of diesel to local marketers, selling for as low as N940 per liter.
However, due to the further devaluation of the Naira, the international price of diesel soared to as high as N1,200 per liter.
As the market price stabilizes and Dangote refinery reaches full capacity, many anticipate that Nigeria will benefit from cheaper diesel and fuel.
