Nigerians get brief relief as diesel prices fall after three months

For the first time in three months, Nigerians are experiencing some relief as diesel prices fell in July, easing to N1,379.48 per litre, according to the latest report by the National Bureau of Statistics (NBS).

The NBS Diesel Price Watch for July 2024 revealed that the average retail price of Automotive Gas Oil, commonly known as diesel, paid by consumers dropped by 5.71 per cent, from N1,462.98 in June 2024 to N1,379.48 in July.

In terms of regional price variations, Taraba State recorded the highest average price at N1,721.79 per litre, followed by Borno at N1,694.17 and Bauchi at N1,619.54.

Conversely, the lowest average prices were reported in Kogi at N1,186.31, Kano at N1,211.11, and Osun at N1,246.82.

“The zonal breakdown shows that the North East had the highest average diesel price at N1,600.85, while the South West recorded the lowest at N1,266.57,” the report noted.

The price drop offers a reprieve for Nigerians who have been struggling with the rising cost of diesel, a vital commodity for both households and businesses.

Read also: Petrol price hits N1000/l as scarcity spreads

Industries such as bakeries, laundromats, and manufacturing firms, which depend heavily on diesel, may see their operational costs slightly decrease, potentially allowing them to pass on some savings to consumers.

Fola, a bakery owner in Lagos, shared her thoughts on the development:

“We’ve been finding it hard to cope with the rising cost of diesel. At one point, we were worried about having to reduce production. This price reduction, though small, is a relief. It means we can keep operating without immediately hiking the price of bread.”

For transporters, the lower diesel price could translate into reduced fares, especially for haulage operators. Diesel powers a large portion of trucks transporting goods across the country, and sustained price reductions could help alleviate some of the pressure on transportation costs, which have surged since the removal of petrol subsidies and the devaluation of the naira.

Earlier in the year, BusinessDay reported on the impact of diesel price hikes on businesses, with many reducing operations or facing closure due to unsustainable fuel costs.

In April, optimism grew when Dangote Refinery began supplying diesel to local marketers at a competitive price of N940 per litre. However, the subsequent devaluation of the naira pushed international diesel prices back up to N1,200 per litre.

Despite the recent drop, concerns remain over whether this trend will last. Many Nigerians, like Austin Adeh, fear that prices may rise again as they did following Dangote’s initial reduction.

“I’m pleased with this price cut, but I’m worried it won’t last. Prices keep fluctuating, and we’re tired of the instability,” Adeh said.

While the dip in diesel prices provides short-term relief, the underlying volatility continues to cause uncertainty for Nigerians who depend on the commodity for daily living and business operations. Whether this marks the beginning of a downward trend or a temporary respite remains to be seen.