Diesel prices increase by 7.5% in August – NBS

The average retail price of Automotive Gas Oil (Diesel) witnessed significant fluctuations in August 2023, both in comparison on a year-on-year and month-on-month basis.

This report offers a comprehensive analysis of these price dynamics and sheds light on regional disparities in diesel prices across Nigeria.

Year-on-Year Price Increase

The average retail price of Automotive Gas Oil (Diesel) witnessed a substantial year-on-year increase of 8.57%. In August 2023, consumers were paying, on average, N854.32 per litre, compared to the lower cost of N786.88 per litre recorded in the same month of the previous year.

Month-on-Month Price Rise

On a month-on-month basis, there was a notable increase of 7.53% in diesel prices. August 2023 saw an average price of N854.32 per litre, up from N794.48 in the preceding month of July.

State-Level Price Variations

Analyzing diesel prices at the state level reveals intriguing insights. The top three states with the highest average prices for diesel in August 2023 were as follows:

Abia State – N970.00 per litre

Niger State – N960.14 per litre

Abuja – N950.22 per litre

Conversely, the three states offering the lowest diesel prices were:

Bayelsa State – N700.00 per litre

Katsina State – N771.43 per litre

Kaduna State – N775.42 per litre

Regional Price Analysis: When examining diesel prices on a zonal basis, the disparities become evident.

The North Central Zone had the highest average price of N907.86 per litre, showcasing the costliest diesel among all the zones.

In contrast, the South South Zone boasted the lowest diesel price at N820.02 per litre, offering a more affordable option for consumers compared to other regions.

Backstory

A recent Nairametrics review a few days ago revealed that diesel prices now sell for over N1000 in some cities in Nigeria. The report noted that the cause of the increase stems from a complex interplay of factors.

One of the factors is the global shortage in diesel production occasioned by oil production cuts from Saudi Arabia and Russia.

Also, the proposed 7.5% VAT on diesel imports and the volatility of the forex market serve as contributing factors to the rise in diesel prices in Nigeria.