Nigerians in the South-West and South-East zones incurred higher diesel costs in December 2022 according to the latest Diesel Price Watch Report by the National Bureau of Statistics (NBS). According to the report, Nigerians in the South-East paid an average of N826.57 per liter in December 2022 while people in the South-West states paid an average of N841.35 per liter.
More details: Highlighted below are the average diesel price per liter for the rest of the zones across the country-
- N824.87 per liter in the North-Central.
- N806.32 per liter in the North-West.
- N811.72 per liter in the North-East
- N798.54 per liter in the South-South.
Prices by states: The states with the highest diesel prices, according to NBS, are Ebonyi at N869.25, Bauchi at N860, and Ondo at N856.36 per liter. Also, the states with the lowest average diesel prices during the period are Akwa Ibom at N773.75, Benue at N777.50, and Borno at N785 per liter.
What consumers are saying: Diesel is mostly used to power haulage trucks, diesel generators, and delivery vans. Some manufacturers whose businesses were active during the period and they highlighted how the higher diesel price uptick affected them.
Mr Onuma, who runs a sports viewing center and bar in the South-East, said that in December 2022, he only had grid power for about 6 hours daily and which was not enough to run his business, especially at night when his business was most active. So, he had to rely on his diesel generator for up to 10 hours daily. And that meant he bought diesel for N890 per liter throughout December.
Agnes a manager at a cold room in Abuja said her boss has been buying diesel at N880 per liter since December 2022, to keep their food items fresh for customers. She said the price has been a burden as her boss could not afford to pay a Christmas stipend to staff last year, as the running costs of the business have become too high, especially for power supply which is very important for the business.
Is there an alternative? Business owners and manufacturers in Nigeria have continued to lament over the rising costs of diesel, which many of them use to run their businesses.
In previous reports, renewable energy is a viable alternative for businesses to run their daily activities. In this interview, it was stated that the hike in diesel prices has created the opportunity for Nigeria’s renewable energy players to meet demands in the commercial and industrial (C&I) sectors. At the time, Rensource Chief Executive Officer, Prince Ojeabulu told Nairametrics that businesses and industries need a greater share of energy to move markets/businesses forward which creates jobs and contributes to financial flows. He said:
- “Without concerns about power cuts, clean energy-reliant businesses can focus on important aspects of their ventures.”
For the record: NBS says the average retail price of Diesel paid by consumers in December 2022 was N817.86 per liter, an increase of 182.64% from N289.37 per liter recorded in the corresponding month of the previous year. On a month-on-month basis, this increased by 1.11% from N808.87 per liter reported in November 2022.
