In recent months, the cost of Automotive Gas Oil (Diesel) has seen a dramatic rise, impacting consumers across Nigeria. The latest data reveals a significant year-on-year increase, with the average retail price jumping by 79.32%.
In June 2023, consumers were paying an average of N815.83 per litre, but by June 2024, this had skyrocketed to N1462.98 per litre.
Monthly Price Increase
On a month-on-month basis, the diesel price also rose. From May 2024 to June 2024, there was a 4.20% increase, moving from N1403.96 to N1462.98 per litre. This continuous rise in fuel prices is a cause for concern among consumers and stakeholders in the economy.
State-by-State Analysis
The variations in diesel prices across different states are noteworthy. The top three states with the highest average prices in June 2024 were:
1. Niger State: N1979.23
2. Cross River State: N1920.86
3. Taraba State: N1742.46
In contrast, the states with the lowest average prices were:
1. Lagos State: N1210.77
2. Ogun State: N1239.17
3. Abuja: N1240.00
Zonal Price Distribution
When examining the zonal representation of average diesel prices, significant differences emerge across regions. The North East Zone recorded the highest average price at N1659.07 per litre, reflecting the broader economic and logistical challenges in this region.
Meanwhile, the South West Zone had the lowest average price at N1280.54 per litre, benefiting from better infrastructure and proximity to ports.
Implications
The rising diesel prices have widespread implications for the Nigerian economy, particularly in sectors reliant on diesel for transportation and power generation. Higher fuel costs can lead to increased prices of goods and services, affecting the cost of living and inflation rates.
Consumers and businesses alike must navigate these challenging times with strategies to manage costs and improve efficiency. Policymakers need to consider measures to stabilize fuel prices and mitigate the economic impact on the population.
The rise in diesel prices over the past year highlights the volatility in the energy sector and its far-reaching effects on the Nigerian economy. As we move forward, it is crucial to monitor these trends closely and adopt policies that can cushion the economic shocks for both consumers and businesses.
