Key highlights
- The National Bureau of Statistics (NBS) has highlighted states with the lowest and highest diesel prices for the month of February 2023.
- Diesel is no longer a regulated commodity in Nigeria, so prices have steadily increased between February 2022 to February 2023.
- Experts have projected diesel scarcity in Sub-Saharan Africa which will impact Nigerian supply, especially as the country lacks refining capacity.
Households and businesses in Edo, Bayelsa and Katsina states paid the lowest average prices for diesel in February 2023. This is according to data from the latest diesel price watch report from the National Bureau of Statistics (NBS).
According to the report, residents in Edo paid an average of N789.43 per liter, which is a 111.54% increase from February 2022. Meanwhile, those in Bayelsa paid an average of N767.14 per liter which is a 155.71% increase from February 2022. Also, residents in Katsina paid an average of N778.75 per liter, which is a 147.91% increase from February 2022.
The report further disclosed that the average retail price of diesel paid by consumers increased by 168.26% on a year-on-year basis from a lower cost of N311.98 per liter recorded in February 2022, to a higher cost of N836.91 per liter in February 2023.
States with highest prices of diesel
According to the NBS report cited, some states paid the highest prices during the period highlighted. It stated further that people in Bauchi state paid an average of N904.33 per liter, those in Abuja paid an average of N885 per liter and people in Adamawa paid an average of N873.33 per liter.
Looking at prices across geopolitical zones, revealed that North-central paid an average of N850.65 per liter, North-west paid N820.62 per liter, North-east paid N848.53 per liter, South-east paid N840.48 per liter, South-west paid N847.60 and the South-south paid N814.63 per liter.
Local diesel prices are rising as experts project diesel scarcity
In February 2022, Nigerians paid an average of N311.98 per liter for diesel. By May 2022, they were paying an average of N671.08 per liter. By December 2022, they were paying an average of N817.86 per liter.
According to a February 2023 report by S&P Global Commodity Insights, Sub-Saharan Africa lacks sufficient refining capacity and therefore is highly dependent on imports. The region needs to import nearly 700,000 barrels per day of diesel, which is 80% of its needs. However, there is a looming diesel scarcity occasioned by the Russian-Ukraine war and sanctions. Part of the report said:
- “Uncertainties for the supply of products to Africa abound. The embargo on Russian oil products imposed on 5 February 2023 means that diesel supply trades to African markets will require some reconfiguration, and this comes with risks. Although Africa does not import material diesel volumes from Russia, Russia is a major diesel exporter to Europe. West African markets are highly dependent on Europe, which soon will lose considerable volumes of Russian crude and diesel imports.”
What you should know
Following the above quote, diesel could become scarce in sub-Saharan Africa, which Nigeria is a part of. This could further increase diesel prices especially because the commodity is no longer regulated in Nigeria, posing a problem for diesel-reliant businesses.