The price of Automotive Gas Oil, popularly known as diesel, is currently sold at N545 in some fuel stations across Lagos. This is an increase of over 113% from the N225 which the commodity was for sold in January 2021.
This was confirmed from findings made by Nairametrics on Saturday across fuel stations in some areas in Lagos.
The findings revealed that while some stations along Lagos-Ibadan expressway are selling at N545/litre, others in Abuja sell between N440 and N460/litre.
Some of the fuel stations visited by Nairametrics were Mobil, along the Lagos-Ibadan Expressway (N545), and Northwest Petroleum, along the Oshodi-Apapa road (N550), Heyden filling station, along Third Axial Road, Ogudu.
The price of diesel, which is not regulated by the government, has surged by over 113% in the last 14 months, as the further rise in global crude oil prices and naira depreciation pushed up the cost of importing fuel into the country.
Diesel is mostly used by businesses, especially manufacturers, to power their generators amid a lack of reliable power supply from the national grid. Many vehicles transporting goods and people across the country also use diesel.
What they are saying about surge
The National Operations Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, said in a recent media briefing that the recent increase in oil prices had led to further hikes in diesel prices in Nigeria.
He said, “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.”
The Director-General, Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, Ayo Olukanni, explained recently in a media report that the private sector had already raised alarm on the increasing difficulties in obtaining the required foreign exchange for raw materials for industry, adding that the high cost of obtaining forex was reflected in the high cost of goods and inflationary trend.
He said, “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.”
What you should know about surge
Two weeks ago, Nairametrics reported that the cost of diesel in major filling stations across Lagos had surged past N400 per litre, as fuel scarcity, rise in oil prices triggered general price increases in the cost of goods and services.
A survey conducted by Nairametrics revealed that most filing stations now sell diesel between N400 and N420 across Lagos up from an average of N350 per litre in late January. Diesel prices closed the year (2021) at under N300 per litre. This time last year, Diesel sold for under N250/litre. The price is as high as N600 per litre in the Federal Capital City Abuja.
Data from the National Bureau of Statistics (NBS) indicate average diesel price in Lagos was N303 in January 2022, a 24% rise when compared to the price of N243 in December, The NBS data also indicate diesel price was N131.47 in June 2015 when the Buhari-led administration came into power.