Nigerians paid 64.58% more for diesel in August — NBS

cover, Financial Markets

The average retail price of Automotive Gas Oil, popularly called diesel, in Nigeria surged by 64.58 per cent year-on-year, reaching N1,406.05/litre in August 2024 compared to the N854.32/litre recorded in the same month last year.

This is according to the National Bureau of Statistics Automotive Gas Oil (Diesel) Price Watch Report for September 2024 released on Monday.

The sharp rise reflects the persistent cost pressure on consumers as fuel prices continue to climb.

“On a month-on-month basis, an increase of 1.93 per cent was recorded from N1,379.48 in July 2024 to an average of N1,406.05 in August 2024,” the report highlighted.

The data was collected from over 10,000 respondents across 774 Local Government Areas in all 36 states and the Federal Capital Territory, Abuja.

Significant regional variations were observed, with Kaduna, Bauchi, and Taraba States recording the highest average prices.

Kaduna topped the list at N1,930.79/litre, closely followed by Bauchi at N1,927.34 and Taraba at N1,638.14. In contrast, the lowest prices were reported in Lagos (N1,237.14), Ogun (N1,255.00), and Osun (N1,268.18) States.

A zonal analysis revealed that the North-East zone had the highest average price of N1,621.23, while the South-West Zone recorded the lowest at N1,283.47.

This disparity highlights the uneven distribution of fuel costs across the country, driven by varying supply and demand dynamics, transportation costs, and regional market conditions.

The sharp increase in diesel prices exacerbates the economic burden on Nigerians, especially as inflationary pressures continue to affect household finances.

In August 2024, the headline inflation rate further eased to 32.15 per cent, down from 33.40 per cent in July 2024. However, month-on-month headline inflation was still at 2.22 per cent, reflecting persistent price increases.

Food inflation, a critical indicator of living costs, remained high at 37.52 per cent in August 2024, further worsening the situation for consumers already grappling with rising fuel prices.