Despite Price Reduction by Dangote Refinery, Diesel Sells for New Amount Across Nigeria
- New data by National Bureau of Statistics has shown in May 2024, customers spent N1403.96 on average per litre of diesel in the country
- Niger state (N1140.20), Kano state (N1153.33), and Oyo state (N1236.92) had the lowest prices
- This occurred despite the fact that the Dangote refinery lowered the price of diesel from N1,200 per litre to N1,000 per litre
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
The National Bureau of Statistics (NBS) data showed that in May 2024, consumers spent an average of N1403.96 per litre on automotive gas oil (diesel).
Source: UGC
This is a 66.29% rise in price over the same month the previous year, from a lower cost of N844.28 per litre in May 2023.
From N1415.06 in the previous month of April 2024 to an average of N1403.96 in May 2024, this indicated a monthly decline of 0.78%.
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Based on the differences in state pricing, the NBS data revealed Adamawa state (N1709.00), Sokoto state (N1675.00), and Bauchi (N1657.92) were the top three states with the highest average product prices in May 2024.
Conversely, the three states with the lowest prices were Niger state (N1140.20), Kano state (N1153.33), and Oyo state (N1236.92) respectively.
When comparing the North-East Zone to the other zones, the South-West Zone had the lowest average price of N1303.60, while the North-East Zone had the highest average price of N1605.91 for automotive gas oil (diesel).
Diesel price rises again
Recall that the depreciation of the naira against the US dollar in May caused the price of diesel produced by the Dangote Petroleum Refinery to rise from N940 per litre to N1,100 per litre.
This came after the Dangote refinery lowered the price of diesel from N1,200 per litre to N1,000 per litre in response to appeals from oil marketers for a price reduction.
The multibillion-dollar facility announced a further drop in the price of diesel after roughly a week, but at the time, it was made clear that the discount only applied to dealers buying five million litres or more of diesel.
According to oil marketers, the recent decline in the value of the naira relative to the dollar has increased fuel prices.
Samuel Oyekanmi, a research and insight associate with Norrenberger Financial Group said,
"The full implementation of Dangote Refinery is a potential growth propeller, however it will take time before we start seeing the full impact on the economy."
Marketers give condition to crash petrol price
Legit.ng previously reported that the Major Energy Marketers Association of Nigeria (MEMAN), which represents oil marketers, highlighted why gasoline at the pump cannot decrease below N300 a litre.
The marketers stated in reaction to rumours that the Dangote Petroleum Refinery and other Indigenous producers and refinery operators would begin significant production and lower the pump price of Premium Motor Spirit to approximately N300 per litre.
Legit.ng also reported that refinery owners, under the aegis of the Crude Oil Refinery Owners Association of Nigeria (CORAN), explained that providing enough crude oil to local refiners would crash the price of petrol.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
