Diesel Price Hike: Nigerians Feel the Pinch as Marketers Boycott Dangote Refinery Products

Diesel Price Hike: Nigerians Feel the Pinch as Marketers Boycott Dangote Refinery Products

The average diesel price in Nigeria has skyrocketed to N1,406.05 per liter, marking a 1.93% month-on-month increase and a staggering 64.58% year-on-year surge. This development has left Nigerians reeling, as the country grapples with economic uncertainty.

The Numbers

According to the National Bureau of Statistics (NBS), the average retail price of Automotive Gas Oil (Diesel) paid by consumers increased by 64.58% on a year-on-year basis from N854.32 per liter in August 2023 to N1,406.05 per liter in August 2024.

Month-on-Month Increase

On a month-on-month basis, the average diesel price rose by 1.93% from N1,379.48 in July 2024 to N1,406.05 in August 2024.

Regional Variations

The NBS report highlights significant regional price disparities:

• Northern states (Kaduna, Bauchi, Taraba) record highest prices (N1,930.79, N1,927.34, and N1,638.14)
• Southern states (Lagos, Ogun, Osun) record lowest prices (N1,237.14, N1,255.00, and N1,268.18)

Boycott by Local Marketers

Industry experts attribute the price hike to a growing standoff between local marketers and Dangote Refinery. Many marketers have refused to purchase the refinery’s lower-priced diesel products.

Dangote Refinery’s Role

Dangote Refinery, Nigeria’s largest refinery, has been producing diesel at a lower price point than imported diesel. However, local marketers’ boycott has limited the refinery’s impact on the market.

Impact on Nigerians

The diesel price surge exacerbates Nigeria’s economic challenges:

• Increased transportation costs
• Higher production costs for businesses
• Reduced purchasing power for households

Expert Analysis

Analysts point to several factors contributing to the price hike:

• Marketers’ boycott of Dangote Refinery products
• Global market trends
• Domestic supply chain disruptions

Solutions

To mitigate the effects of the price hike:

• Government intervention to resolve the standoff
• Increased investment in domestic refining capacity
• Improved supply chain efficiency

Conclusion

The diesel price hike has significant implications for Nigeria’s economy. Urgent action is needed to address the underlying issues and ensure stable fuel supply.