• Wednesday, July 24, 2024
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BusinessDay

Diesel prices soar to 66%, Northeast hit hardest

MRS pegs diesel retail price at N1050/Litre nationwide

Nigerians are feeling the pinch at the pump, as the price of Automative Gas Oil (AGO) rises in May.

According to the National Bureau of Statistics (NBS) Diesel Price Watch report, the year-to-date increase for diesel as of May 2024 is a staggering 66.29 per cent. This translates to a litre of diesel now costing over N1,400, a significant jump from N844.28 in May 2023.

Read also: MRS pegs diesel retail price at N1050/Litre nationwide

Compared to April 2024, there was a slight month-on-month decline of 0.78 per cent in May. However, this small drop does little to alleviate the overall burden on consumers who are already grappling with higher costs of living.

The report further highlights the geographical disparity in diesel pricing across Nigeria. The Northeast region continues to hold the dubious distinction of having the most expensive diesel, with the average price reaching N1,605.91 in May 2024.

This is a significant increase from N908.02 seen in the same region just a year prior. Conversely, Southwest offers some solace with the lowest average price at N1,303.60 per litre. However, even this price point reflects a substantial jump of 56.23 per cent compared to May 2023.

Drilling down further, the NBS report reveals a clear variation in pricing at the state level. Motorists in Adamawa State face the highest average price at a staggering N1,709 per litre, followed by Sokoto State at N1,675 and Bauchi State at N1,657.92.

On the brighter side, some states offer some relief. Niger State boasts the lowest average price at N1,140.20, followed by Kano State at N1,153.33 and Oyo State at N1,236.92. These regions provide a more affordable option for consumers, although the overall price increase is undeniable.

Despite Nigeria’s status as a leading crude oil producer in Africa, the country relies heavily on imported refined products such as petrol, diesel, and aviation fuel for its domestic consumption.

The establishment of the Dangote refinery hailed as a transformative force in the industry, is anticipated to exert a positive influence on petroleum product prices, including Premium Motor Spirit (PMS) and diesel.

Read also: Diesel prices yet to drop despite Dangote’s price cuts

In April, BusinessDay reported that the refinery had initiated deliveries of its initial batch of diesel to local marketers, marking a significant development with a notable reduction in diesel prices from N1,200 per litre to N1,000 per litre.

Subsequently, two weeks later, the refinery announced further price cuts for both diesel and aviation fuel, reducing prices to N940 per litre for diesel and N980 per litre for aviation fuel.