Diesel is one of the most used petroleum products in Nigeria as such many consumers want to know the price. The diesel price in Nigeria is not stable due to the fluctuation in the Nigerian economy.
According to Statistics by statista, in January 2024, Nigeria recorded a 39.11% increase in the average retail price of Automotive Gas Oil (Diesel). This means it rises from ₦828.82 per litre in the same month last year to ₦1153.01 in January 2024.
Likewise, there was a 2.34% monthly increase, with prices rising from ₦1126.69 in December 2023 to ₦1153.01 in January 2024.
Also, the price of diesel in Nigeria dropped by 5.71% in July 2024 compared to the previous month. However, the largest increase was recorded in March 2022, when the average price increased by almost 73%. The rise in diesel prices in recent years has been related to a global fuel shortage and supply chain challenges triggered by the war in Ukraine and regulations.
In May 2024 diesel was sold on average in Nigeria at the rate of ₦1462.98
Diesel Price in Nigeria
Today, the diesel price in Nigeria is ₦1160 on average across the 36 states and FCT Abuja. Here I will tell you the diesel price across the 36 states in Nigeria.
Why Is Diesel Price In Nigeria High?
There are so many factors that affect the price of diesel in Nigeria. Even though the main cause is the instability we are facing in our economy today. Other factors include global oil price, tax levels by the three arms of government in Nigeria, exchange rate, and more.
Global Oil Price
Global crude oil prices are one of the primary determinants of diesel prices worldwide. Changes in oil production, war, geopolitical tensions, and market demand affect diesel prices in Nigeria today. For instance, the war between Ukraine and Russia leads to an increase in local diesel prices.
Exchange Rate
The exchange rate is a great determinant in the price of anything in Nigeria and diesel is not exempted. This is because oil transactions are conducted in dollars and a weaker Naira can lead to higher diesel costs. As of today, 1 USD is equivalent to ₦1700.
Taxes imposed by Government
Another important factor that affects the diesel price in Nigeria are the taxes imposed by the government. Also, the variation in price in different states can be traced to this.
Final Thought
Whether you are a business owner, a farmer, a daily commuter, or you power your generator with diesel, the diesel price in Nigeria should not be a problem again.
Knowing the price will help you manage the current expenses and also aid in planning for future financial decisions. Ultimately, if you plan you can reduce the adverse effects of diesel price fluctuations in your daily life and business activities.
