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Nigeria's Petrol Price Rises While Diesel Price Falls in July 2024 - NBS Report

 

Nigeria's Petrol Price Rises While Diesel Price Falls in July 2024 - NBS Report



The average retail price of Premium Motor Spirit (PMS), commonly known as petrol, saw a noticeable increase in July 2024, rising by 2.72% to N770.54 per liter compared to N750.17 per liter in June. This data was revealed in the latest Petrol Price Watch report published by the National Bureau of Statistics (NBS), providing a detailed overview of the fluctuations in fuel prices across Nigeria.


Year-on-Year Comparison Shows Significant Price Hike

The report also highlighted a substantial year-on-year increase in petrol prices, with the average price rising by 23.35%. In July 2023, the average price was N600.35 per liter, compared to N770.54 per liter in July 2024. This sharp increase is a reflection of the broader economic factors influencing the fuel market in Nigeria, including the ongoing removal of fuel subsidies.


State-by-State Analysis: Katsina Leads with Highest Petrol Prices

A breakdown of petrol prices across different states revealed significant regional variations. Katsina State recorded the highest average retail price at N950.00 per liter. Following closely were Jigawa and Benue States, with prices of N903.08 and N846.95 per liter, respectively.

In contrast, Kwara, Edo, and Akwa Ibom States had the lowest average prices for petrol, with Kwara leading at N650.00 per liter, followed by Edo at N669.75 and Akwa Ibom at N673.75 per liter.


Fuel Scarcity Persists Amid Price Increases

The rise in petrol prices comes amidst ongoing fuel scarcity issues in key areas such as Lagos, the Federal Capital Territory (Abuja), and other parts of the country. The scarcity has been a significant challenge for residents and businesses, exacerbating the impact of the rising fuel costs.

This situation follows the Nigerian Government’s decision in May 2023 to remove fuel subsidies, a move that led to an immediate spike in fuel prices. The average price of petrol jumped from N238 per liter in May 2023 to the current N770.54 per liter in July 2024, reflecting the broader economic adjustments post-subsidy removal.


Diesel Prices See a Decline in July 2024

In contrast to the rising petrol prices, the average retail price of Automotive Gas Oil (AGO), commonly known as diesel, saw a decrease in July 2024. According to the NBS's latest report on AGO prices, the average price of diesel fell by 5.71% from N1462.98 per liter in June to N1379.48 per liter in July 2024.


Year-on-Year Diesel Price Increase

However, despite the monthly decline, diesel prices have seen a significant year-on-year increase. In July 2023, the average price was N794.48 per liter, marking a 73.63% increase to N1379.48 per liter in July 2024. This surge underscores the broader inflationary trends affecting energy prices in Nigeria.


State Variations in Diesel Prices

The report also provided insights into the state-by-state variations in diesel prices. Taraba State recorded the highest average price at N1721.79 per liter, followed by Borno State at N1694.17 and Bauchi at N1619.54 per liter.

On the other end of the spectrum, Kogi State had the lowest average price for diesel at N1186.31 per liter, with Kano State and Osun State following at N1211.11 and N1246.82 per liter, respectively.


Economic Implications and Future Outlook

The contrasting trends in petrol and diesel prices reflect the complex dynamics of Nigeria’s fuel market, influenced by both domestic policy decisions and global energy prices. The removal of fuel subsidies has led to increased costs for consumers, while the slight decrease in diesel prices may provide some relief for industries reliant on diesel-powered machinery.


For the latest updates on fuel prices and economic trends in Nigeria, stay tuned to Naija Newshawk, your go-to source for comprehensive and timely news coverage.

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