The price of Automotive Gas Oil, commonly known as diesel, saw a sharp year-on-year increase of 64.58 percent in Nigeria, with the average price reaching N1,406.05 per litre in August 2024, compared to N854.32 per litre in August 2023. This data comes from the National Bureau of Statistics (NBS) in its September 2024 Automotive Gas Oil (Diesel) Price Watch Report, released on Monday.

This significant hike highlights the growing financial strain on consumers as fuel prices continue to rise. The report also noted a month-on-month increase of 1.93 percent, as the average price of diesel rose from N1,379.48 in July 2024 to N1,406.05 in August 2024.

The NBS gathered data from over 10,000 respondents across all 774 Local Government Areas in Nigeria, covering the 36 states and the Federal Capital Territory, Abuja.

Regional Price Variations

Diesel prices varied significantly across different states, with the highest average prices recorded in Kaduna, Bauchi, and Taraba states. Kaduna led with N1,930.79 per litre, followed by Bauchi at N1,927.34 and Taraba at N1,638.14. In contrast, Lagos had the lowest price at N1,237.14 per litre, followed by Ogun at N1,255.00 and Osun at N1,268.18 per litre.

A zonal analysis revealed that the North-East region had the highest average price at N1,621.23 per litre, while the South-West recorded the lowest at N1,283.47 per litre. These variations reflect differing supply and demand conditions, transportation costs, and regional market factors across the country.

Economic Impact

The sharp rise in diesel prices adds to the financial pressure on Nigerians, who are already dealing with inflation. In August 2024, the headline inflation rate eased slightly to 32.15 percent, down from 33.40 percent in July 2024, but month-on-month inflation remained high at 2.22 percent, showing persistent price increases.

Food inflation also stayed high at 37.52 percent in August 2024, further burdening households struggling with rising living costs amid climbing fuel prices. The ongoing inflationary pressures continue to challenge Nigerians, particularly in maintaining household budgets and coping with escalating fuel and food costs.