The cost of Premium Motor Spirit, commonly referred to as petrol, saw a substantial year-on-year (YoY) surge of 226.75% in September 2023, reaching N626.21 per litre. This marks a notable increase from the N191.65 per litre recorded during the same period in 2022.

This situation persists as the price of fuel continues to climb in various states. This is primarily due to the prolonged inability of oil marketers to engage in imports, despite the deregulation of Nigeria's downstream sector many months ago.

Nonetheless, within its most recent publication, titled "Petrol Price Observation Report for September 2023, According to the latest report from the National Bureau of Statistics (NBS), Taraba State stood at the pinnacle of the price chart, charging N665.70 per liter for Premium Motor Spirit (Petrol). This represented a 9.8% increase above the post-subsidy adjusted price of N600.35 per liter for that region. Borno State followed closely, pricing petrol at N657.37 per liter, while Benue State ranked third at N641.29 per liter, marking a 8.7% and 6.4% increase above the post-subsidy prices, respectively.

Additionally, the report also highlighted the price of diesel, with Kano State leading the chart at N967.78 per liter, reflecting a 7.9% rise from the price of N890.80 per liter. Anambra State came next at N950.95 per liter, and Niger State took third place with N950.55 per liter, demonstrating a 6.3% increase for both.

On the other hand, Rivers, Delta, and Jigawa states offered the lowest retail prices for petrol, selling at N602.55, N605.88, and N617.42 per liter, as per the NBS report. Bayelsa, Katsina, and Rivers states recorded the lowest retail prices for diesel at N840.16, N840.55, and N840.82 per liter, respectively.

In a parallel development, the average retail price of Automotive Gas Oil (Diesel) saw a year-on-year increase of 12.77%, reaching N890.80 per liter in September 2023, up from N789.90 per liter in 2022.

The elevated diesel expenses are impacting operational activities

Numerous fuel stations remained shuttered in the Lagos area and its surroundings. Tunji Oyebanji, the former Chairman of the Major Oil Marketers Association of Nigeria (MOMAN), commented on this situation, stating, "There are several factors that could have precipitated this crisis, and one of them is the persistent surge in diesel prices. It's worth noting that some trucks are currently immobilized due to the unfavorable economic conditions that affect profit margins.