According to data from the National Bureau of Statistics (NBS), the average price of diesel in Nigeria surged by 1.93% in August 2024, reaching N1,406.05 per liter. This increase comes amid an ongoing standoff between local fuel marketers and Dangote Refinery, with many marketers choosing not to purchase the refinery’s lower-priced diesel products.
Diesel Price Recovers from July Decline
After a 5.71% price drop in July 2024, where the average retail price of diesel fell from N1,462.98 to N1,379.48, the market saw a sharp rebound in August. The rebound is likely due to the boycott by local fuel marketers, who have refused to buy from Dangote Refinery despite its lower prices. On a year-on-year basis, diesel prices have increased by 64.58%, up from N854.32 per liter in August 2023.
Regional Price Variations
NBS data also highlighted regional disparities in diesel prices. Northern states recorded the highest prices, with Kaduna leading at N1,930.79 per liter and Bauchi at N1,927.34. Meanwhile, southern states like Lagos and Ogun posted the lowest prices, at N1,237.14 and N1,255.00, respectively.
Dangote Refinery’s Impact on Diesel Prices
The Dangote Refinery began operations in March 2024 and has been supplying diesel and jet fuel since April. Aliko Dangote, Africa’s richest individual, announced that the refinery’s diesel production has caused a significant price drop, reducing the cost from around N1,700 to approximately N1,000 per liter—a 60% decrease.
Despite this reduction, local fuel marketers have largely boycotted Dangote Refinery’s products, choosing instead to import refined products from abroad. According to Devakumar V.G. Edwin, Vice President of Dangote Industries Limited, only 3% of the refinery’s output is sold locally, while the remaining 97% is exported due to the boycott.
This standoff has contributed to rising diesel prices, even as the refinery works to offer more affordable petroleum products to the Nigerian market.
