Diesel rates in Lagos state will rise to N867 per litre today, Saturday, August 12, from N875 in the Southwest area.
This is based on information obtained from industry sources acquainted with the situation.
Diesel prices are growing despite being deregulated prior to the withdrawal of fuel subsidies, because ex-depot prices are rising. According to sources, the ex-depot price for diesel at the Apapa port is presently between N790-N820 per litre.
Meanwhile, according to an industry data sheet recently published by the Major Oil Marketers Association of Nigeria (MOMAN), ex-depot diesel prices at Apapa port were as follows:
- 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 document stated that diesel prices in the country were N650 per litre over the same time period. MOMAN estimated the diesel price using the current exchange rate of 1 US dollar to N895.
Nigeria’s exchange rate is currently extremely volatile. On Friday, Nairametrics reported that the naira-dollar exchange rate ended a turbulent week by quoting for as much as N955/$1 on the illicit market.
According to Nairametrics, Nigeria’s exchange rate began the week at N895/$1 before falling to N900/$1 on August 9th, the lowest in recorded history.
Meanwhile, the currency has fallen by 8% year to date as demand continues to outpace supply.
Because diesel is imported into Nigeria alongside other petroleum goods purchased in dollars, the devaluation of the local currency against the dollar would have a negative impact on diesel prices, which has already begun to play out at the Apapa Hub.
It’s also worth noting that diesel prices in other parts of the country have risen since the second quarter of 2023.
According to the National Bureau of Statistics’ (NBS) June 2023 diesel price watch report, diesel in Taraba state cost N899.23 per litre, N875.67 per litre in Adamawa state, and N873.33 per litre in Niger state in June 2023.
Meanwhile, according to NBS data, the average diesel price in the country is N815.83 per litre, a 3.37% decrease from the N844.28 per litre recorded in May 2023.
