Diesel prices in Nigeria have surged to N978 per liter, as reported by HydroCarbon Information Services (HydroCIS) Limited.
Data reveals a consistent fluctuation in prices, with the average nationwide cost standing at N978 per liter on November 28, compared to N974 on November 23 and N993 on November 20.
The spike in diesel prices in Nigeria is part of a broader global trend exacerbated by a September 21 announcement from Russia, which temporarily halted diesel exports to most countries.
Russia aimed to stabilize its domestic market but eased some restrictions by September 25, allowing the export of specific vessel bunkering fuel and diesel with higher sulfur levels.
This global diesel shortage contributed to prices exceeding N1000 per liter in Nigeria in October 2023.
According to the National Bureau of Statistics (NBS), the average retail price rose from N890.80 in September to N1004.98 in October, marking a 12.82% increase in just one month and a 25.45% surge compared to the previous year.
The NBS report also highlighted regional disparities in diesel prices. In October 2023, Plateau State recorded the highest price at N1150.00, Nasarawa State at N1138.00, and Benue State at N1091.67.
In contrast, Rivers State had the lowest price at N824.44, followed by Borno State at N827.27, and Kebbi State at N845.00.
The escalating diesel costs pose challenges for Nigerian manufacturers and businesses, many of which rely on diesel generators due to unreliable power supply from the national grid.
This issue has been emphasized by various businesses, such as Eden Moringa, whose managing director, Dr. Ashimashiga Michael, noted the operational dependence on diesel generators amid daily power disruptions.”