High Energy Cost Takes Toll as Diesel Prices Soar 182.6% in One Year

Emmanuel Addeh in Abuja

The cost of energy supply has continued to take a depressing toll on Nigerians with the average retail price of Automotive Gas Oil (diesel) paid by consumers in 12 months soaring by 182.64 per cent.

The latest National Bureau of Statistics (NBS) report showed that the cost of a litre of the fuel rose from N289.37 in December 2021 to N817.86 per litre for the same period in 2022.

Nigeria has faced rocketing inflation in recent years induced in part by the rising cost of energy, weakening naira against the dollar, hobbled oil and gas production as well as misalignment between fiscal and monetary policies.

Many businesses have continued to struggle for survival, with some having to suspend operations due to surging diesel prices, as others have pruned down their staff strength to cut labour costs.

But on a month-on-month (MoM) basis, the NBS report covering last month, showed that the price of diesel  increased by 1.11 per cent from N808.87 per litre reported in November 2022.

On state profile analysis, the highest average price of the product in December 2022, the organisation said, was recorded in Ebonyi with N869.25, followed by Bauchi with N860.00, and Ondo with N856.36.

On the other hand, it added that the lowest price was recorded in Akwa Ibom with N773.75, followed by Benue with N777.50 and Borno with N785.00.

Furthermore, analysis by zone showed that the South-west had the highest price with N841.35, while the South-south recorded the lowest price with N798.54.

However, it is not just the prices of diesel that are negatively impacting businesses and individuals. The NBS also said that the average retail price for refilling a 5kg Cylinder of Liquefied Petroleum Gas (LPG) or cooking gas increased on a year-on-year (YoY) basis by 27.00 per cent from N3,594.81 in December 2021.

But it rose marginally from 0.36 per cent on a MoM basis from N4,549.14 recorded in November 2022 to N4,565.56 in December 2022.

Further analysis of the NBS numbers showed that Kwara recorded the highest average price for refilling a 5kg cylinder of gas with N4,950.00, followed by Adamawa with N4,933.33, and Plateau with N4,917.50.

According to the report, Anambra recorded the lowest price with N4,182.14, followed by Abia and Rivers with N4,196.15 and N4,207.27 respectively.

In addition, analysis by zone showed that the North-central recorded the highest average retail price for refilling volume of gas with N4,841.07, followed by the North-east with N4,593.99, while the South-east recorded the lowest with N4,386.39.

Also, the average retail price for refilling a 12.5kg cylinder of gas increased by 0.67 per cent on a MOM basis from N10,180.88 in November 2022 to N10,248.97 in December 2022. On a YoY basis, this rose by 39.78 per cent from N7,332.04 in December 2021.

The NBS report also showed that Benue recorded the highest average retail price for the refilling of a 12.5kg cylinder with N11,250.00, followed by Cross River with N10,892.86 and Ebonyi with N10,753.57.

Conversely, the lowest average price was recorded in Yobe with N9,500.00, followed by Zamfara and Gombe with N9,706.25 and N9,750.00 respectively.

Similarly, the average retail price per litre of kerosene paid by consumers in December 2022 was N1,104.61, indicating an increase of 1.94 per cent compared to N1,083.57 recorded in November 2022.

“On a YoY basis, the average retail price per litre of the product rose by 136.04 per cent from N467.97 in December 2021. On state profile analysis, the highest average price per litre in December 2022 was recorded in Abuja with N1,383.33, followed by Akwa Ibom with N1,341.67 and Cross River with N1,300.00.

“On the other hand, the lowest price was recorded in Bayelsa with N864.58, followed by Jigawa with N904.76 and Rivers with N916.67. In addition, analysis by zone showed that the South-east recorded the highest average retail price per litre of household kerosene with N1,203.95, followed by the South-west with N1,177.89, while the North-west recorded the lowest with N1,011.49, ”NBS said.

It further stressed that the average retail price per gallon of kerosene paid by consumers in December 2022 was N3,753.38, showing an increase of 4.42 per cent from N3,594.44 in November 2022. “On a YoY basis, this increased by 137.15 per cent from N1,582.73 in December 2021,” it stated.