Commodities
Diesel Prices Surge to Record High, Nigerian Consumers Struggle to Keep Up
Motorists and Industries Hit Hard as Diesel Prices Soar in May 2023
Adamawa Tops the List: Diesel Prices Reach N970.00 per litre
Diesel Price Shock: Bayelsa Offers Relief with Lowest Average at N736.88 per litre
Diesel prices in Nigeria have skyrocketed to unprecedented levels, leaving consumers grappling with the financial strain of keeping their vehicles fueled.
The recent surge in fuel costs has sent shockwaves through the nation, as businesses and individuals find it increasingly difficult to cope with the mounting expenses.
According to the latest data released by the Nigerian Bureau of Statistics (NBS), the average retail price of Automotive Gas Oil (commonly known as diesel) reached a staggering record high in May 2023 as the average retail price of diesel rose to N844.28 per litre, reflecting a significant increase of 25.81% from the previous year’s average of N671.08 per litre.
The relentless increase in diesel prices shows no signs of abating, with a month-on-month rise of 0.24% from April 2023, where the average price was N842.25 per litre. Such incremental increases further exacerbate the financial strain on consumers, who are already grappling with the rising costs of essential goods and services.
Analyzing the state profile, Adamawa tops the list with the highest average price in May 2023 as consumers paid N970.00 per litre. This was followed by Bauchi, where consumers paid an average of N940.00 per litre, and Taraba, where the price reached N915.50 per litre.
Bayelsa offers some relief with the lowest average price recorded at N736.88 per litre while Delta and Anambra follow suit with relatively lower prices at N772.50 and N775.71 per litre, respectively.
Zooming out to a zone-wise analysis, the North-East region emerges as the area burdened with the highest diesel prices, averaging at N908.02 per litre.
On the other hand, the South-East region offers some respite with the lowest average price of N809.62 per litre. These regional disparities reflect the varying degrees of impact felt by consumers and businesses in different parts of the country.
The reasons behind this alarming price surge are multifaceted, influenced by global oil market dynamics, foreign exchange rates, and domestic economic policies.