The average price of diesel in Nigeria increased by 1.93% in August 2024, reaching N1,406.05 per liter, according to the latest data from the National Bureau of Statistics (NBS). This rise comes amid a boycott by local fuel marketers, who are refusing to purchase lower-priced diesel from the Dangote Refinery.
In July 2024, diesel prices saw a 5.71% drop, falling from N1,462.98 in June to N1,379.48. However, in August, prices rebounded, likely driven by the refusal of marketers to buy from the refinery, preferring to continue importing diesel from abroad.
On a year-on-year basis, diesel prices surged by 64.58%, up from N854.32 per liter in August 2023, marking a sharp rise in fuel costs for consumers.
The report highlighted that the northern region experienced the highest diesel prices, with Kaduna State recording an average price of N1,930.79 per liter, followed by Bauchi at N1,927.34. In contrast, southern states like Lagos and Ogun posted the lowest average prices at N1,237.14 and N1,255.00 per liter, respectively.
The Dangote Refinery, which began operations in March 2024, has been supplying diesel and jet fuel at significantly reduced rates since April. Aliko Dangote, Africa’s richest man, stated that the refinery’s diesel supply has led to a 60% decrease in local market prices, from around N1,700 to about N1,000 per liter.
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Despite this, the refinery is facing resistance from local marketers, who are boycotting its products. Devakumar V.G. Edwin, Vice President of Dangote Industries Limited, expressed disappointment at the marketers’ refusal to buy diesel from the refinery. He revealed that while the refinery has a large production capacity, only 3% of its output is being sold locally, with the rest being exported due to the boycott.
The standoff highlights the ongoing challenges in Nigeria’s fuel market as efforts to lower diesel costs face resistance from some quarters of the industry.
