Petrol Rises 157%, Diesel 50%, LPG 46% in One Year as Energy Prices Extend Surge

There seems to no reprieve for Nigerians in the immediate term as energy prices continued to skyrocket year-on-year in February, mainly on the back of inadequate local production, subsidy removal, near collapse of the naira against the dollar and deteriorating fuel transport infrastructure.

Latest data from the National Bureau of Statistics (NBS) indicated that compared to February last year, the average retail price of diesel paid by consumers increased by 50.20 per cent on a year-on-year basis.

This means that the price increased from a lower cost of N836.91 per litre recorded in the corresponding month of last year, to a higher cost of N1,257.06 per litre in February 2024.

Nigeria has long withdrawn the subsidy on diesel, thereby leaving it strictly to market dynamics. The price of the product tends to affect petrol prices and power because the pipelines for transporting petrol are almost non-existent, while many Nigerians depend on diesel to power their businesses.

But on a month-on-month basis, an increase of 9.02 per cent diesel price was recorded in February from N1,153.01 in the preceding month of January 2024 to an average of N1,257.06 in February 2024.

According to the NBS data, the top three states with the highest average price of the product in February 2024 included Akwa Ibom State (N1,525.00), Gombe State (N1,500.00) and Kwara (N1,444.00).

But the states with the lowest prices were Adamawa (N1,037.50), Kano (N1,111.43) and Katsina (N1,125.00), raising questions as to why the product will be costlier in zones that are closer to the ports and where some refining take place.

For instance, the South-south zone, where some diesel refining is carried out by modular refineries had the highest price of N1,343.09 during the period under review.

As for Liquefied Petroleum Gas (LPG) or cooking gas, the average retail price for refilling a 5kg cylinder increased by 33.78 per cent y-o-y from N4,600.57 in February 2023.

On a month-on-month basis, it rose 19.75 per cent from N5,139.25 recorded in January 2023 to N6,154.50 in February 2024.

On state profile analysis, Lagos recorded the highest average price for refilling a 5kg cylinder of cooking gas, with N6,820.00, followed by Imo with N6,785.71, and Anambra with N6,750.00.

On the other hand, Yobe recorded the lowest price with N4,912.50, followed by Kebbi and Adamawa with N5,350.00 and N5,385.00 respectively.

In addition, analysis by zone showed that the South-east recorded the highest average retail price for refilling same volume, with N6,616.57, followed by the South-west with N6,513.30, while the North-central recorded the lowest with N5,723.02.

For a 12.5kg cylinder, prices increased by 28.33 per cent on a month-on-month basis from N11,735.72 in January 2024 to N15,060.38 in February 2024. That would be a rise of 46.88 per cent from N10,253.39 in February 2023.

However, on state profile analysis, Ogun recorded the highest average retail price for the refilling of a 12.5kg cylinder, with N16,375.00, followed by Delta with N16,333.33 and Edo with N16,321.43.