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NBS reports diesel prices rise highest in 3 months

NBS reports diesel prices rise highest in 3 months

The average price per litre paid by consumers for Automotive Gas Oil (Diesel), rose the highest within the last three months in May, according to the National Bureau of Statistics (NBS).
Within the last three months, the average retail price of diesel increased from N539.3 in March to N671.1 in May.
The NBS report also said on state profile analysis, that the state with the highest average price for Diesel in May 2022 was Ekiti with N716.15, followed by Osun and Oyo with N716.00 and N707.33 respectively.
“On the other hand, the state with the lowest average retail price was Yobe with N560.00, followed by Bauchi and Delta with N570.00 and N624.44 respectively.
In addition, the zone analysis shows that the average price of Diesel was highest in the South-West with N705.60, while the North-East had the lowest price with N639.00.”

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Kelechi Chidi-Ihuoma, Senior Investment Analyst, Meristem Securities Limited said: “For diesel, the reason for the significant increase is due to the rise of crude oil prices. The crude oil price has been above $100 per barrel since late February and this is due to the Russia/Ukraine war.
“Despite Nigeria being a crude oil exporter, we import about 90 percent of our refined petroleum that is consumed locally,” she noted.
However, due to that importation, we are affected by the rising crude oil prices. According to Kelechi, the absence of subsidies for diesel fuels also affects the price.