Information from sources in the oil and gas industry revealed that starting today, Saturday, August 12, 2023, diesel prices will rise to N867 per litre in Lagos State and N875 per litre in the South West region.
Diesel prices are increasing significantly, even though they were deregulated before the removal of fuel subsidies, due to the rise in ex-depot prices.
Sources confirmed that ex-depot prices for diesel at the Apapa port now range between N790 and N820 per litre.
A recent industry data sheet shared by the Major Oil Marketers Association of Nigeria showed the following ex-depot prices for diesel at the Apapa port: July 24 – N624 per litre;
July 25 – N638 per litre;
July 27 – N647 per litre;
July 28 – N653 per litre;
July 31 – N693 per litre;
August 2 – N649 per litre; and August 3 – N714 per litre.
Similarly, the same MOMAN industry sheet indicated that diesel prices in the country during that same period were around N650 per litre.
This diesel price calculation by MOMAN was based on an exchange rate of N895/$ at the time.
Currently, Nigeria’s exchange rate is experiencing significant volatility.
On Friday, the exchange rate between the naira and the dollar closed a tumultuous week, reaching as high as N955/$1 on the black market.
The exchange rate opened the week at N895/$1 before falling to N900/$1 on August 9, the lowest recorded in history.
Furthermore, the exchange rate has depreciated by 8% month-to-date due to ongoing demand outstripping supply.
Since diesel is imported into Nigeria, along with other petroleum products purchased in dollars, the depreciation of the local currency against the dollar is negatively impacting diesel prices, a trend that is evident at the Apapa hub.
Diesel prices in other parts of the country have also seen an increase since the second quarter of 2023.
According to the June 2023 diesel price watch report from the National Bureau of Statistics, diesel prices in Taraba State were N899.23 per litre, Adamawa State recorded N875.67 per litre, and Niger State had N873.33 per litre.
In contrast, the average diesel price across the country was approximately N815.83 per litre, which is a 3.37% reduction from the N844.28 per litre recorded in May 2023, according to data from the NBS.
