Diesel prices in Nigeria have surged to N978 per litre as of Tuesday, November 28, according to data released by HydroCarbon Information Services (HydroCIS) Limited.
This continuous hike in prices has amplified the financial strain on businesses, exacerbating challenges already posed by an inconsistent power supply.
The data revealed a fluctuating trend in diesel costs, showcasing a gradual but notable increase.
While the nationwide average diesel price stood at N974 per litre on November 23, it had escalated to N993 per litre on November 20. The recent surge has roots in a global shortage of diesel, amplified by Russia’s decision in September to limit exports, impacting the international market significantly.
Commenting on the dire situation, an industry expert, Dr. Ashimashiga Michael, Managing Director at Eden Moringa, reflected on the mounting expenses businesses face due to the escalating diesel prices.
“Our manufacturing business operates for eight hours daily, relying on diesel generators for six to seven hours,” Michael lamented. “We spend over N300,000 to N400,000 monthly on diesel purchases to run the business.”
This increase in diesel costs has had a profound effect on various sectors reliant on constant power supply. With Nigeria’s inconsistent electricity grid, many businesses have resorted to diesel generators to sustain operations, further adding to their financial burdens.
Moreover, the National Bureau of Statistics (NBS) reported a12.82% rise in diesel prices from September to October 2023, marking an economic challenge for industries nationwide.
The report also highlighted variations in diesel prices across states, with Plateau, Nasarawa, and Benue states experiencing the highest costs, while Rivers, Borno, and Kebbi states faced comparatively lower prices.
Amidst these concerning figures, data from HydroCIS also highlighted other fuel costs, with petrol averaging at N607 per litre, kerosene at N905 per litre, and liquefied petroleum gas (LPG) prices varying across regions, ranging from N10,650 to N11,750 for a 12.5kg cylinder.
The ripple effect of these escalating fuel prices continues to reverberate across sectors, adding strain to already beleaguered businesses and posing challenges to the nation’s economic stability.