Effective today, Saturday, August 12, diesel prices will hit N867 per litre in Lagos state and N875 in the Southwest region.
This is according to information seen by TheTimes from industry sources familiar with the matter.
Why the increase
Diesel prices are skyrocketing despite being deregulated before the fuel subsidy removal because ex-depot prices are increasing. This week, sources told TheTimes that ex-depot prices for diesel at the Apapa port now range between N790-N820 per litre.
Recent trajectory in ex-depot price change
Meanwhile, in an industry data sheet recently shared by the Major Oil Marketers Association of Nigeria (MOMAN), ex-depot prices for diesel at the Apapa port were;
July 24 – N624 per litre
July 25 – N638 per litre
July 27 – N647 per litre
July 28 – N653 per litre
July 31 – N693 per litre
August 2 – N649 per litre
August 3 – N714 per litre
Meanwhile, the same MOMAN industry sheet also highlighted diesel prices in the country during the same period as N650 per litre. The diesel price was calculated by MOMAN using the exchange rate which was 1 US dollar to N895 at the time.
Nigeria’s exchange rate is currently experiencing a high level of volatility. On Friday, TheTimes reported that the exchange rate between the naira and dollar closed a tumultuous week quoting for as high as N955/$1 on the black market.
According to the TheTimes report, Nigeria’s exchange rate opened the week at N895/$1 before it fell to N900/$1 on the 9th of August, the lowest in recorded history.
Meanwhile, the exchange rate has now depreciated by 8% month to date as demand continues to outstrip supply.
Since diesel is imported into Nigeria, alongside other petroleum products, which are purchased in dollars, the depreciation of the local currency against the dollar will negatively impact diesel prices, which has started to play out at the Apapa Hub
It is also important to note that diesel prices in other parts of the country have seen an increase since the second quarter of 2023.
The June 2023 diesel price watch report from the National Bureau of Statistics (NBS) showed that in June 2023, diesel in Taraba state cost N899.23 per litre, N875.67 per litre in Adamawa state and N873.33 per litre in Niger state.
Meanwhile, the average diesel price in the country was placed at N815.83 per litre, a 3.37% reduction from the N844.28 per litre recorded in May 2023, according to data from the NBS.