Like petrol, the price of diesel in Nigeria today depends on NNPC pump price. The price of diesel in black market is always higher than the official price. Diesel price tends to be higher in Lagos than in Abuja. The truth is that diesel price differ across Nigerian states. Filling stations buy diesel in depot price. If you check the Nigerian diesel price history from 10 years ago, you’ll find out that the price of diesel has increase by more than 500%
The Effect of Diesel Prices on Everyday Living in Nigeria
The diesel price in Nigeria has a notable impact on the everyday living of its citizens. Diesel, being a primary source of fuel for many industries and households, influences the cost of goods and services. When diesel prices rise, the cost of production for businesses increases, leading to higher prices for consumers.
Diesel is also used extensively for transportation in Nigeria. It powers the engines of buses, trucks, and other commercial vehicles. Therefore, an increase in diesel prices directly affects transportation costs. This can lead to higher fares for public transportation and increased costs for goods transported across the country.
Another area of everyday life affected by diesel prices is electricity. Many households and businesses in Nigeria rely on diesel generators due to the inconsistent power supply. When diesel prices rise, the cost of running these generators increases, leading to higher electricity costs.
Diesel price fluctuations also affect the agricultural sector. Diesel is used to power farm machinery and for transportation of produce from farms to markets. Higher diesel prices can increase the cost of food production, leading to higher food prices.
Lastly, the cost of diesel can impact the overall economic stability of Nigeria. High diesel prices can lead to inflation, reducing the purchasing power of the Naira, Nigeria’s currency. This can affect the standard of living, especially for those on fixed incomes or the poor.
Why Diesel Prices Differ Across Nigerian States
Diesel prices in Nigeria vary across different states due to the cost of transportation. Diesel has to be transported from refineries to various states, and the cost of this transportation is factored into the final price. States that are farther away from the refineries or have difficult terrains often have higher diesel prices due to the increased transportation costs.
Differences in state taxes also contribute to the variation in diesel prices. Each state in Nigeria has the autonomy to impose its own taxes on commodities, including diesel. Therefore, states with higher taxes will have higher diesel prices. This is often a reflection of the state’s economic policies and revenue generation strategies.
Diesel Prices across Nigeria
Major cities like Lagos, Abuja, and Port Harcourt often have lower diesel prices compared to more remote areas. This is because they are closer to the ports where diesel is imported, resulting in lower transportation costs. Additionally, these cities have a higher concentration of businesses and industries, leading to a higher demand and more competitive pricing. The average price of diesel in nigeria today May 18, 2024 is 1,600 NGN.
| States | Diesel Price (₦) |
|---|---|
| Abuja | 1,600 |
| Abia | 1,600 |
| Adamawa | 1,650 |
| Anambra | 1,600 |
| Akwa Ibom | 1,600 |
| Benue | 1,600 |
| Bayelsa | 1,600 |
| Borno | 1,650 |
| Cross River | 1,600 |
| Delta | 1,600 |
| Ebonyi | 1,600 |
| Edo | 1,600 |
| Ekiti | 1,600 |
| Enugu | 1,600 |
| Gombe | 1,650 |
| Imo | 1,600 |
| Jigawa | 1,650 |
| Kaduna | 1,650 |
| Kano | 1,650 |
| Katsina | 1,650 |
| Kebbi | 1,650 |
| Kogi | 1,650 |
| Kwara | 1, 600 |
| Lagos | 1,600 |
| Nasarawa | 1,650 |
| Niger | 1,650 |
| Ogun | 1,600 |
| Ondo | 1,600 |
| Osun | 1,600 |
| Oyo | 1,600 |
| Plateau | 1,650 |
| Rivers | 1,600 |
| Sokoto | 1,650 |
| Taraba | 1,650 |
| Yobe | 1,650 |
| Zamfara | 1,650 |
| Bauchi State | 1, 650 |
In contrast, diesel prices are typically higher in northern and interior regions of Nigeria. The increased distance from the ports results in higher transportation costs, which are passed on to the consumers. Additionally, these areas may have less competition among suppliers, leading to higher prices.
Nigeria diesel price history
Understanding the history of diesel prices in Nigeria requires a look at the country’s economic and political landscape. Nigeria, as a major oil-producing country, has a complex relationship with fuel prices, particularly diesel, which is widely used for commercial and industrial purposes.
Since the 1970s, Nigeria has been an important player in the global oil market. However, despite being a major oil producer, the country has struggled with refining capacity, leading to a reliance on imported refined petroleum products, including diesel. This reliance on imports has a direct impact on diesel prices.
Throughout the 1980s and 1990s, the Nigerian government heavily subsidized diesel and other fuel prices. These subsidies were intended to make fuel affordable for the average Nigerian, but they also strained the government’s budget and were often a source of corruption.
In the early 2000s, attempts were made to deregulate the oil sector and remove these subsidies. This led to significant fluctuations in diesel prices, often resulting in public protests. For instance, in 2012, a major nationwide strike occurred when the government attempted to remove fuel subsidies.
More recently, in 2023, the Nigerian government announced the complete deregulation of the downstream oil sector, including diesel. This move was intended to allow market forces to determine diesel prices. However, it also led to an immediate increase in diesel prices, sparking concerns about inflation and the cost of living.
Diesel price in Nigeria today black market
The term ‘black market’ refers to an illegal market where goods or currencies are bought and sold without government regulation. In the context of diesel prices in Nigeria, the black market would refer to the buying and selling of diesel outside of official channels.
Due to the lack of regulation, prices on the black market can vary significantly and are often higher than official prices. The price of diesel in Nigeria today May 18, 2024 black market is 2,000 NGN.
However, it’s important to note that exact prices on the black market are difficult to determine due to its clandestine nature. Prices can fluctuate rapidly and vary from place to place, making it challenging to provide a definitive figure for the price of diesel on the black market in Nigeria today.
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NNPC diesel price today
The Nigerian National Petroleum Corporation (NNPC) is the state oil corporation responsible for the exploration and production of petroleum and petroleum products in Nigeria. However, it’s important to note that NNPC does not directly set the price of diesel in Nigeria. As at today, May 18, 2024 the new NNPC pump price for diesel in Nigeria is 1,400 NGN
Diesel prices in Nigeria are deregulated, meaning they are determined by the forces of demand and supply in the market. This is unlike the price of petrol, which is regulated by the government. Therefore, the NNPC does not have an official price for diesel.
Depot Price of Diesel today
Diesel depots in Nigeria are essentially storage facilities where diesel fuel is kept before it is distributed to various parts of the country. These depots are critical to the supply chain of diesel fuel in Nigeria, ensuring that there is always a steady supply of diesel for the country’s numerous industries and households.
Most diesel depots in Nigeria are owned by the Nigerian National Petroleum Corporation (NNPC), the state oil corporation, which is responsible for the exploration, importation, and sale of petroleum products in the country. However, there are also several private depots owned by independent oil marketers. The depot price of Diesel by NNPC as at today May 18, 2024 is 1,400 NGN
Diesel depots are usually located near ports or refineries for easy access to imported or locally refined diesel. These depots have large storage tanks that can hold thousands of liters of diesel. They also have loading bays where tanker trucks are filled with diesel for distribution to filling stations across the country.