Diesel price spikes from N1,800 to over N2,000/litre

The price of diesel, also known as Automotive Gas Oil (AGO), has risen above N2,000 per litre in Nigeria, raising concerns among businesses and other diesel users.

A market survey showed that the retail price of diesel increased on Friday to between N2,000 and N2,020 per litre in Abuja and surrounding areas.

Before the latest increase, diesel was selling for between N1,700 and N1,800 per litre at several filling stations.

The new price represents an increase of between N220 and N300 per litre, depending on the filling station and location.

The increase came after diesel depot owners raised their selling prices to about N1,900 per litre.

Some of the depot operators that implemented the new prices include Ranoil Delta, Nigerian Independent Petroleum Company (NIPCO) Warri, Prudent Oghara and Zamson, among others.

The increase in depot prices has now been reflected in the retail market, with consumers paying more for diesel at filling stations.

Diesel remains an important source of energy for many businesses and households in Nigeria, particularly those that depend on generators because of unreliable electricity supply.

The latest price increase could therefore put additional pressure on businesses, especially small and medium-sized enterprises that rely heavily on diesel-powered generators and equipment.

Transport operators and companies that use diesel-powered vehicles and machinery may also face higher operating costs as a result of the development.

The increase could also affect the cost of goods and services if businesses pass the additional energy costs on to consumers.

Earlier, Dangote Refinery increased its gantry price for diesel by N100, taking it to N1,850 per litre.

The increase came amid a rise in international crude oil prices, which had recently moved above $95 per barrel.

However, Brent crude had slightly dropped to $94.74 per barrel, while West Texas Intermediate (WTI) stood at $90.34 per barrel as of Friday.

The latest development adds to the recent changes in fuel prices in Nigeria and could further increase pressure on businesses already dealing with high operating costs.

Industry players and consumers will be watching the market closely to see whether diesel prices remain above the N2,000 per litre mark or fall if international crude prices decline.