Average Price of Diesel in Nigeria increases by 12.77% on a year-on-year Basis 

According to the National Bureau of Statistics (NBS), the average retail price that consumers paid for automobile gas oil (diesel) climbed from N789.90 per litre in September 2022 to N890.80 per litre in September 2023, representing a 12.77% year-over-year rise.

The price of diesel increased month over month starting in August 2023, when it was N854.32 per liter, a 4.27% increase. The top three states with the highest average product prices in September 2023 are Kano State (N967.78), Anambra State (N950.95), and Niger State (N950.55), taking into account the variations in state pricing. Diesel price increases are partially caused by the depreciation of exchange rates.

The nation’s unreliable power supply forces enterprises to keep up backup power sources, such as diesel-powered generating sets. As a result, the rising cost of fuel drives up production costs, which are then transferred to consumers in the form of increased pricing.

Enhancing foreign exchange management is necessary to lessen the likelihood of fluctuations in fuel prices brought on by fluctuations in exchange rates. In order to reduce reliance on imported fuel and minimize the impact of fluctuations in exchange rates on diesel prices, it is also necessary to enhance the capacity of local refining facilities.