Diesel prices in Nigeria have surged to N978 per litre as of November 28, as reported by HydroCarbon Information Services (HydroCIS) Limited. This marks a slight increase from the N974 per litre recorded on November 23 and a notable decline from the N993 per litre reported on November 20.
The fluctuation in diesel prices is influenced by various factors, including global market dynamics. Notably, Russia’s decision on September 21 to halt diesel exports to most countries contributed to a global shortage, prompting a spike in prices. However, by September 25, Russia partially eased restrictions, allowing the export of bunkering fuel for specific vessels and diesel with higher sulfur levels.
In October 2023, diesel prices in Nigeria surpassed N1000 per litre, prompting concerns across various sectors. The National Bureau of Statistics (NBS) reported a substantial month-on-month increase, with the average retail price rising from N890.80 in September to N1004.98 in October—an increase of 12.82%. Compared to the previous year, the average diesel price saw a significant rise of 25.45% from N801.09.
The NBS report also highlighted regional disparities in diesel prices, with Plateau State recording the highest price at N1150.00, followed by Nasarawa State at N1138.00 and Benue State at N1091.67. Conversely, Rivers State reported the lowest diesel price at N824.44, trailed by Borno State at N827.27 and Kebbi State at N845.00.
The escalating cost of diesel has placed a burden on Nigerian manufacturers and businesses, particularly those reliant on diesel generators due to inconsistent power supply. A year ago, the managing director of Eden Moringa, Dr. Ashimashiga Michael, revealed the challenges faced by his manufacturing business, noting monthly expenditures of N300,000 to N400,000 on diesel to sustain operations.
Beyond diesel, other fuel prices also experienced fluctuations. Average nationwide petrol prices stood at N607 per litre, while kerosene prices reached N905 per litre. Additionally, the costs of liquefied petroleum gas (LPG), commonly known as cooking gas, varied across regions, with prices at N11,750 in the Northwest (Kano state), N10,650 in the Southwest (Lagos state), and N11,375 in the North Central (Abuja).
As businesses grapple with rising fuel costs, there is a growing need for comprehensive energy policies and solutions to address the challenges posed by fuel price volatility. The impact extends beyond individual businesses, affecting the broader economy and emphasizing the importance of sustainable and affordable energy sources.
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