Diesel Jumps To N350/Litre, Increases By 56% In One Year

Emerging reports have claimed that the price of Automotive Gas Oil, also known as diesel, has increased further to N350 per litre in some filling stations in Lagos.

Recall, on October 7, 2021 that fuel marketers had increased diesel price to N320 per litre as the further rise in global crude oil prices and naira depreciation pushed up the cost of importing fuel into the country.

The price of diesel, which is not regulated by the government, has increased by over 40 per cent so far this year from an average price of N225 per litre in January.

Prime Business Africa observed that several filling stations in Lagos had increased the price of the product to N350 per litre, up from a high of N340 last year.

Mobil, along the Lagos-Ibadan Expressway, and Northwest Petroleum, along the Oshodi-Apapa road, sold the product for N350 per litre on Thursday, while Heyden filling station, along Third Axial Road, Ogudu, sold it for N345.

Oando and Enyo filling stations, all along the Lagos-Ibadan Expressway, sold the product for N340 and N335 per litre respectively.

Crude oil price accounts for a large chunk of the final cost of petroleum products, and changes in oil prices affect the landing cost of imported fuel.

The National Operations Controller, Independent Petroleum Marketers Association of Nigeria, Mr. Mike Osatuyi, said on Thursday that the recent increase in oil prices led to the further hike in diesel prices in Nigeria.

“If crude oil prices continue to rise, diesel price will also go up. This is coupled with the depreciation of the naira. Naira is around 570-575 to a dollar at the parallel market,” he added.

Brent crude, the international oil benchmark, climbed above $85 per barrel on Wednesday to its highest in more than two months. It stood at $84.72 per barrel as of 7:59pm Nigerian time on Thursday.

“Perhaps most embarrassing is the energy crisis, with our low generation and distribution problems; we can only boast of combined install generation capacity for of about 12,000MW, distribution of just 4000MW and abysmal 114kwh per capita for a population of over 200 million and running our industries on generators.”