Diesel Prices Hits New Price Weeks Before Christmas, See Current Price Per Liter

Diesel Prices Hits New Price Weeks Before Christmas, See Current Price Per Liter

As of Tuesday, November 28, diesel prices in Nigeria have surged to N978 per liter, as reported by HydroCarbon Information Services (HydroCIS) Limited, according to data shared with RALD NEWS. The nationwide average diesel prices on that Tuesday were N978 per liter, a slight increase from N974 per liter on November 23 and a prior figure of N993 per liter on November 20.

It's noteworthy that on September 21, Russia took measures to stabilize its domestic market by halting diesel exports to most countries, with a subsequent easing of restrictions by September 25. Russia allowed the export of bunkering fuel for specific vessels and permitted the export of diesel with higher sulfur levels during a period of global diesel shortage, contributing to a surge in prices. Russia, a significant global diesel exporter, played a pivotal role in this context.

In October 2023, diesel prices in Nigeria exceeded N1000 per liter, as highlighted by the National Bureau of Statistics (NBS), indicating a notable 12.82% increase from N890.80 in September. Comparing on a yearly basis, the average diesel price witnessed a substantial surge of 25.45%, rising from its previous figure of N801.09.

The NBS report outlined the states in Nigeria with the highest and lowest diesel prices in October 2023. Plateau State led with the highest price at N1150.00, followed by Nasarawa State at N1138.00, and Benue State at N1091.67. Conversely, Rivers State had the lowest price at N824.44, trailed by Borno State at N827.27, and Kebbi State at N845.00.

It is crucial to highlight the challenges faced by Nigerian manufacturers and businesses due to escalating diesel costs. Many of these entities, reliant on the national grid, grapple with daily power supply issues, prompting a shift to diesel generators for operational needs, particularly in heavy machinery usage.

To illustrate the impact, over a year ago, Dr. Ashimashiga Michael, the managing director at Eden Moringa, revealed that his manufacturing business operates for eight hours daily, relying on a diesel generator for six to seven hours. Despite utilizing industrial meters for on-grid power, the business incurs substantial monthly expenses of over N300,000 to N400,000 on diesel purchases, underscoring the financial strain exacerbated by the continuous upward trend in diesel prices since 2022.