Diesel
The average retail price of Automotive Gas Oil, commonly known as diesel, in Nigeria experienced a sharp increase of 64.58% year-on-year, rising to N1,406.05 per litre in August 2024. This is a significant jump from the N854.32 per litre recorded in the same period last year. The data was revealed in the National Bureau of Statistics’ (NBS) Automotive Gas Oil (Diesel) Price Watch Report for September 2024, which was released on Monday.
On a month-on-month basis, diesel prices rose by 1.93%, from N1,379.48 in July 2024 to an average of N1,406.05 per litre in August 2024. This continuous increase highlights the sustained cost pressures that Nigerian consumers are facing as fuel prices remain elevated across the country.
The NBS report gathered data from over 10,000 respondents across 774 Local Government Areas in Nigeria, covering all 36 states and the Federal Capital Territory. This widespread data collection highlights the broad impact of rising diesel prices nationwide.
Significant regional variations in diesel prices were observed, with the northern states of Kaduna, Bauchi, and Taraba recording the highest prices. Kaduna led the list at N1,930.79 per litre, followed closely by Bauchi at N1,927.34 per litre and Taraba at N1,638.14 per litre, underscoring the higher fuel costs in these regions.
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In contrast, the lowest diesel prices were reported in Lagos, Ogun, and Osun states. Lagos saw the lowest average price at N1,237.14 per litre, while Ogun and Osun recorded N1,255.00 and N1,268.18 per litre, respectively. These figures show the disparity in fuel pricing across different parts of the country.
A zonal analysis of the data revealed that the North-East zone recorded the highest average diesel price at N1,621.23 per litre, while the South-West zone had the lowest at N1,283.47 per litre. This disparity highlights the uneven distribution of fuel costs, likely influenced by factors such as transportation expenses and regional market dynamics.
The sharp increase in diesel prices is exacerbating the economic burden on Nigerians, particularly at a time when inflationary pressures continue to squeeze household budgets. The rising cost of diesel, essential for transportation and power generation, compounds the struggles of both businesses and individuals.
Although the headline inflation rate in Nigeria slightly eased to 32.15% in August 2024, down from 33.40% in July 2024, month-on-month inflation remains high at 2.22%. This indicates that price increases are still ongoing, further straining the financial well-being of many Nigerians.
