In October 2023, there was a widespread increase in the average retail prices per liter of petroleum products, including household kerosene, automobile gas oil, and premium motor spirit. The National Bureau of Statistics (NBS) reports that the average price of gasoline in October 2023 was N630.63, which is a 0.71% increase over September’s average price of N626.21.
Additionally, the price of kerosene in October was N1303.16, which is a month-over-month increase of almost 0.32% over the N1,299.03 reported in September 2023. Of the three items, diesel saw the largest price increase. Diesel went from costing N890.80 in September 2023 to N1004.98 in October 2023, a 12.82% rise in just one month.
The government’s earlier decision to impose a 7.5% VAT on diesel may be linked to the disparity in price increases of the three items. But the plan was put on hold for half a year. The increase that occurred in October most likely resulted from the projected suggested VAT strategy.
Due to the unstable power supply and heavy reliance on diesel to run generators, price increases would raise operating costs, which businesses would then pass along to customers in the form of increased pricing, thereby exacerbating the already high rate of inflation. The government must guarantee a steady electricity supply in order to lessen the impact of the high cost of diesel on the typical Nigerian.