The pump prices of diesel and petrol increased significantly to 55.9 percent and 42.6 percent respectively between April 2022 and the same period in 2023, new data from the National Bureau of Statistics (NBS) has indicated.
The average retail price of diesel also called Automotive Gas Oil (AGO) paid by consumers rose from a lower cost of N539.32 per litre recorded in the corresponding month of last year to a higher cost of N836.81 per litre in March.
Nigeria’s rising energy costs have resulted in the country’s jumping inflation and contribute significantly to costs borne by manufacturers in the country. For instance, last month, the NBS said Nigeria’s headline inflation rate increased to 22.04 percent on a year-on-year basis.
It was 6.13 percent higher than the rate recorded in March 2022 at 15.92 percent, with energy costs on electricity, gas, and other fuels contributing significantly.
Recently, manufacturers said surging diesel prices will force them to cut jobs, curb operations and raise prices. In addition, power, which is largely unstable normally accounts for as much as 40 percent of factories’ costs in Nigeria, according to the Manufacturers Association of Nigeria (MAN).
