Starting today, Saturday, August 12th, the cost of diesel will surge to N867 per liter in Lagos state and N875 in the Southwest region,
The reason behind this price hike is the soaring ex-depot prices despite the previous deregulation and removal of fuel subsidies.
Recent reports indicate that ex-depot prices for diesel at the Apapa port have now escalated to a range of N790-N820 per liter.
Examining the trajectory of ex-depot price fluctuations, the Major Oil Marketers Association of Nigeria (MOMAN) shared industry data that shows the following ex-depot prices for diesel at the Apapa port:
– July 25 – N638 per liter
– July 27 – N647 per liter
– July 28 – N653 per liter
– July 31 – N693 per liter
– August 2 – N649 per liter
– August 3 – N714 per liter
Furthermore, according to MOMAN’s industry data, during the same period, diesel prices across the country were calculated at N650 per liter, based on an exchange rate of 1 US dollar to N895.
Nigeria’s exchange rate is currently experiencing significant volatility.
Recent reports reveal that the exchange rate between the naira and the dollar reached as high as N955/$1 on the black market, with the week beginning at N895/$1 and dropping to N900/$1 on August 9th, the lowest recorded in history.
The exchange rate has depreciated by 8% month-to-date due to demand consistently outpacing supply.
The depreciation of the local currency against the dollar has a negative impact on diesel prices since it is imported, along with other petroleum products, and purchased in dollars.
This depreciation has already begun affecting diesel prices at the Apapa Hub.
It’s important to note that diesel prices in various regions of the country have seen an increase since the second quarter of 2023.
The June 2023 diesel price report from the National Bureau of Statistics (NBS) reveals that diesel cost N899.23 per liter in Taraba state, N875.67 per liter in Adamawa state, and N873.33 per liter in Niger state.
Meanwhile, the average diesel price across the country was N815.83 per liter, reflecting a 3.37% reduction from the N844.28 per liter recorded in May 2023, according to data from the NBS.
