As the holiday season approaches, diesel prices in Nigeria have experienced a significant decline, reaching N978 per liter as of Tuesday, November 28, according to data released by HydroCarbon Information Services (HydroCIS) Limited.
Comparing recent figures, the average nationwide diesel prices stood at N978 per liter on November 28, slightly up from N974 per liter recorded on November 23. A more noticeable drop was observed from November 20, when diesel prices were at N993 per liter.
The recent fluctuations in diesel prices can be attributed to global factors, including Russia’s decision on September 21 to halt diesel exports to most countries. This move was aimed at stabilizing Russia’s domestic market. However, by September 25, Russia eased some of these restrictions, allowing the export of bunkering fuel for specific vessels and diesel with higher sulfur levels.
In October 2023, Nigeria experienced a surge in diesel prices, surpassing the N1000 per liter mark. The National Bureau of Statistics (NBS) reported a significant month-on-month increase, with the average retail price rising from N890.80 in September to N1004.98 per liter in October—a 12.82% increase.
On a yearly basis, the average diesel price showed a substantial 25.45% surge from its previous figure of N801.09. The NBS report highlighted the states with the highest and lowest diesel prices in October 2023. Plateau State recorded the highest price at N1150.00, followed by Nasarawa State at N1138.00, and Benue State at N1091.67. Conversely, Rivers State had the lowest price at N824.44, followed by Borno State at N827.27, and Kebbi State at N845.00.
The rising diesel costs have posed challenges for Nigerian manufacturers and businesses, many of which rely on diesel generators due to the erratic power supply from the national grid. Over a year ago, the managing director at Eden Moringa, Dr. Ashimashiga Michael, highlighted the impact on his manufacturing business, stating that monthly expenses on diesel purchases ranged from N300,000 to N400,000 to keep operations running.
In addition to diesel, HydroCIS data also revealed that average nationwide petrol prices on Tuesday were N607 per liter, while kerosene prices averaged N905 per liter. The costs for 12.5kg liquefied petroleum gas (LPG), commonly known as cooking gas, varied across regions: N11,750 in the Northwest (Kano state), N10,650 in the Southwest (Lagos state), and N11,375 in the North Central (Abuja).
