Businesses, households groan as diesel price surges 209.5% in one year

The average price of diesel also known as automotive gas oil (AGO) has risen by more than 200 percent over last year, as the global energy crisis persists.

According to data by the National Bureau of Statistics (NBS), the average retail price of diesel in August 2022 was N786.88 per litre, indicating a 209.54 percent increase from an average retail price of N254.21 in August 2021.

On a month-on-month basis, an increase of 1.61 percent from N774.38 per litre was reported in July 2022.

Nigerian households and businesses are taking a beating as the rising cost of diesel and the foreign exchange shortage in the country linger, coupled with a high inflation rate affecting the cost of living.

“We are really suffering because of the scarcity and cost of getting diesel and on top of this, our trips have reduced,” said Femi Ajikapo, a truck driver in Lagos.

The father of three said it has been frustrating to keep up with providing for his family’s basic needs.

“This is my livelihood and it is getting tougher to make bread in this country,” said Ajikapo.

Read also: Entrepreneurs struggle as cost of doing business surges

As announced on Thursday by NBS, the inflation rate in Nigeria accelerated to 20.52 percent in August from 19.64 percent in the previous month.

Ochidaka Ojonugwa, a printing press operator along the Kogi State University (KSU) axis, said the cost of getting a printing job done has skyrocketed.

He said: “the cost of getting materials, its transportation, and every other factor in the value chain have all recorded a hike in price as the cost of getting diesel keeps increasing.

“We tried to spread the increase in prices on our clients but it has little or no effect,” he said. “Now, customers are not coming as they used to, with fewer jobs and low income.”

The Russian invasion of Ukraine in February has played a major part in the ongoing energy crisis. Prior to the war, Brent stood below $80 per barrel.

Today, the crude benchmark had an average of $90 per barrel, according to oil price.

On the other hand, state profile analysis by the NBS showed the highest average price of the product in August 2022 was recorded in Ebonyi with N861.67, followed by Ondo with N850.00, and Abuja with N845.00.

Meanwhile, the lowest price was recorded in Katsina with N702.22, followed by Yobe with N705.00 and Akwa Ibom with N731.82.

Further analysis by zone showed that the north-central had the highest price with N813.24, while the south-south recorded the lowest price with N762.41.