According to the National Bureau of Statistics (NBS) Diesel Price Watch report for July 2024, the average retail price of Automotive Gas Oil (Diesel) paid by consumers decreased by 5.71%, falling from N1,462.98 in June 2024 to N1,379.48 in July 2024.
However, on a year-on-year basis, the average diesel price rose by 73.63%, increasing from N794.48 per liter in July 2023 to N1,379.48 per liter in July 2024.
State Price Variations
Examining the variations in state prices, the top three states with the highest average price of diesel in July 2024 were:
- Taraba State – N1,721.79 per liter
- Borno State – N1,694.17 per liter
- Bauchi State – N1,619.54 per liter
Conversely, the states with the lowest average diesel prices were:
- Kogi State – N1,186.31 per liter
- Kano State – N1,211.11 per liter
- Osun State – N1,246.82 per liter
Zonal Price Representation
In terms of zonal representation, the Northeast Zone recorded the highest average diesel price at N1,600.85, while the Southwest Zone had the lowest average price at N1,266.57.
What You Should Know
Despite being one of Africa’s leading crude oil producers, Nigeria relies heavily on imported refined products like petrol, diesel, and aviation fuel. This dependency makes these commodities vulnerable to international market prices and global trade fluctuations.
Although Nigeria operates three refineries, they have been inactive for decades and cannot refine crude oil. The much-anticipated Dangote refinery, touted as a “game changer” for the industry, is expected to influence petroleum prices, including diesel and PMS positively.
In April, the Dangote refinery began supplying its first batch of diesel to local marketers at a price as low as N940 per liter. However, after the naira’s further devaluation, the international price of diesel surged to as high as N1,200 per liter.
As the market stabilizes and the Dangote refinery reaches full operational capacity, there is widespread anticipation that Nigeria will benefit from more affordable diesel and fuel prices. However, the refinery has faced intense scrutiny from regulatory authorities concerning its capacity and the quality of its products.
Measures to Reduce Diesel Prices
In October 2023, the federal government approved a six-month exemption from Value Added Tax (VAT) on diesel imports to control prices. While this order lapsed in April 2024, the government has not issued a further statement regarding an extension.
However, Taiwo Oyedele, Chairman of the Committee on Fiscal Policy and Tax Reforms, indicated that a draft extension memo awaits approval. Finance Minister Wale Edun also mentioned that more duty waivers are expected in the coming weeks as part of the proposed Inflation Reduction Act.
