The average price of diesel in Nigeria has risen by 1.93% month-on-month in August 2024, reaching N1,406.05 per liter.
This is according to the latest data from the National Bureau of Statistics (NBS).
The month-on-month increase comes amid a growing standoff between local marketers and Dangote Refinery, with many marketers refusing to purchase the refinery’s lower-priced diesel products.
Diesel price recovering from July drop
The average retail price of Automotive Gas Oil (Diesel) paid by consumers decreased by 5.71%, dropping from N1,462.98 in June 2024 to N1,379.48 in July 2024.
In contrast to the 5.71% price drop recorded in July 2024, diesel prices rebounded sharply in August, likely driven by a boycott initiated by local fuel marketers.
Nigeria recorded a significant year-on-year increase of 64.58% from N854.32 per liter in August 2023.
The NBS report highlighted that the highest average prices were recorded in the northern region, with Kaduna leading at N1,930.79 per liter, followed by Bauchi at N1,927.34. Meanwhile, southern states like Lagos and Ogun posted the lowest average prices at N1,237.14 and N1,255.00, respectively.
The report read: “The average retail price of Automotive Gas Oil (Diesel) paid by consumers increased by 64.58% on a year-on-year basis from a lower cost of N854.32 per liter recorded in the corresponding month of last year (i.e., August 2023) to a higher cost of N1,406.05 Per liter in August 2024.
“On a month-on-month basis, an increase of 1.93% was recorded from N1,379.48 in July 2024 to an average of N1,406.05 in August 2024.
“Looking at the variations in the State prices, the top three States with the highest average price of the product in August 2024 include Kaduna State (N1,930.79), Bauchi State (N1,927.34), and Taraba (N1,638.14).
“Furthermore, the top three lowest prices were recorded in the following State namely, Lagos State (N1,237.14), Ogun State (N1,255.00), and Osun (N1,268.18).”
What you should know
- The Dangote Refinery commenced operations in March, supplying diesel and aviation jet fuel in April, and premium motor spirit (PMS) in September.
- Aliko Dangote, Africa’s richest individual, earlier announced that the supply of diesel from his Dangote Refinery has caused a roughly 60% decrease in the commodity’s price in the local market.
- The business mogul stated that before the Dangote Refinery began operations, diesel was sold at around N1,700. However, the refinery reduced the price to about N1,000, marking a drop of approximately 60%.
- He also noted that despite the exchange rate rising to about N1,500 per dollar, they have managed to keep the price of diesel below N1,200.
- However, during an X (formerly Twitter) space hosted by Nairametrics, the Vice President of Dangote Industries Limited, Devakumar V.G. Edwin, expressed frustration over the boycott of Dangote Refinery’s products by local marketers.
- He revealed that despite the refinery’s efforts to supply affordable petroleum products, many traders in Nigeria have refused to purchase from the refinery, preferring to continue importing refined products from abroad.
- Despite the refinery’s large production capacity, local marketers are only purchasing about 3% of the output.
- He noted that the remaining 97% of the refinery’s production, including diesel and jet fuel, is being exported due to a boycott by local traders who refuse to buy at the refinery’s lower prices.
