Petrol Price in Nigeria Surges to N696.79 per Litre in March 2024

The average retail price of petrol in Nigeria has skyrocketed to N696.79 per litre in March 2024, according to the latest report by the National Bureau of Statistics (NBS). This represents a staggering 163.65% increase compared to the price of N264.29 per litre recorded in March 2023.

The NBS Petrol Price Watch for March 2024 reveals that the North-East zone had the highest average retail price at N732.37 per litre, while the South-West zone recorded the lowest price at N654.24 per litre. On a state-by-state basis, Taraba had the highest average retail price at N761.92 per litre, followed by Yobe and Adamawa at N749.09 and N735.00, respectively. Conversely, Lagos, Oyo, and Ogun states had the lowest average retail prices at N630.75, N645.88, and N651.25 per litre, respectively.

The report also noted that the average retail price of petrol increased by 2.56% month-on-month, from N679.36 in February 2024 to N696.79 in March 2024. This indicates a consistent upward trend in fuel prices across the country.

Why this matters: The significant increase in petrol prices has far-reaching implications for the Nigerian economy and the daily lives of its citizens. As transportation costs rise, it is expected to have a ripple effect on the prices of goods and services, further exacerbating inflationary pressures. The surge in fuel prices also highlights the need for the government to address the challenges in the oil and gas sector and explore sustainable alternatives to reduce the country's dependence on imported petroleum products.

In addition to the rise in petrol prices, the NBS report also revealed that the average retail price of Automotive Gas Oil (Diesel) increased by 59.51% year-on-year, from N840.81 per litre in March 2023 to N1,341.16 per litre in March 2024. The highest average diesel prices were recorded in Edo, Jigawa, and Cross River states, while the lowest were in Plateau, Niger, and Adamawa states.

The Dangote Petroleum Refinery has recently reduced the price of diesel from N1,200 to N1,000 per litre, a 30% reduction from the previous market price of about N1,600 per litre. This significant reduction is expected to have a positive impact on the economy and potentially help curb the high inflation rate in the country.

As Nigerians grapple with the rising cost of fuel, there are growing concerns about the affordability and accessibility of petroleum products in the country. The government faces the challenge of balancing the need for market-driven prices with the welfare of its citizens, particularly those in the lower-income brackets who are most affected by the price hikes.

Key Takeaways

• Petrol price in Nigeria surged 163.65% to N696.79/litre in March 2024.
• North-East had highest avg price at N732.37/litre, South-West lowest at N654.24/litre.
• Diesel price increased 59.51% to N1,341.16/litre, Dangote reduced it to N1,000/litre.
• Price hikes will impact inflation, economy, and welfare of lower-income Nigerians.
• Govt faces challenge of balancing market prices and citizens' welfare.