Emmanuel Addehin from Abuja, Nigeria, sat down to discuss the significant rise in energy costs that has been impacting everyday Nigerians. Over the past year, petrol prices have surged by 64%, while the cost of Liquefied Petroleum Gas (LPG), commonly referred to as cooking gas, has jumped 60%. In addition, the average retail price of diesel has soared by 59.2%, and household kerosene has risen by 50%.
According to the latest report from the National Bureau of Statistics (NBS), September saw Katsina experiencing the highest petrol prices, averaging N1,096 per litre. Meanwhile, Rivers topped the list for cooking gas, with prices reaching N7,285.71 for a 5kg cylinder.
This rise in energy prices can be attributed to a combination of factors, including fluctuations in the international oil market, where crude oil has recently topped $80 per barrel, and President Bola Tinubu’s decision to remove petrol subsidies and float the Naira. When he assumed office, the official price set by the Nigerian National Petroleum Company Limited (NNPC) was N194. Today, the lowest price for petrol across the country stands at N1,030 per litre.
The transition to a floated naira has also contributed to this financial strain. Under the previous administration, the ‘managed’ exchange rate was around N460 to the dollar, compared to the current rate of approximately N1,700 to the dollar, marking a significant devaluation of the local currency.
Transportation challenges also add to rising prices. Tanker operators have inflated their costs due to poor road conditions and the need to frequently replace spare parts.
In September 2024, consumers paid an average retail price of N1,030.46 for petrol, reflecting a 64.55% increase from N626.21 in September 2023. It also showed a 24.08% increase from August 2024, when the price was N830.46. Katsina has the highest average petrol retail price at N1,096.15, followed by Ebonyi and Akwa Ibom at N1,090.94 and N1,085.71, respectively. Interestingly, northern states like Yobe, Sokoto, and Kebbi had the lowest prices, with averages of N939.38, N961.67, and N986.67, respectively.
On a zonal basis, the Northwest recorded the highest petrol prices at N1,036.52, while the Northeast had the lowest at N1,014.55.
In terms of cooking gas, despite the federal government’s announcement to remove the Value Added Tax (VAT), the price for refilling a 5kg cylinder increased by 4.19% from N6,430.02 in August to N6,699.63 in September. Year-on-year, this represents a 59.90% rise from N4,189.96 in September 2023. Rivers again led with the highest price at N7,285.71, followed closely by Gombe and Borno.
When it comes to a 12.5kg cylinder, the average price rose by 4.89% month-on-month, reaching N16,313.43 in September 2024, up 76.41% from N9,247.40 a year earlier.
Diesel prices also reflect this upward trend, rising by 59.28% compared to last year, from N890.80 to N1,418.83 per litre. Month-on-month, there was a slight increase of 0.91% from August. The states experiencing the highest diesel prices included Bauchi (N2,061.67), Gombe (N1,615.00), and Akwa Ibom (N1,592.86).
Kerosene prices followed suit, averaging N1,957.44 in September 2024—up 5.95% from August and 50.68% from the previous September. Abuja recorded the highest price for kerosene at N2,816.67, while Bayelsa had the lowest at N1,416.67.
In regional analysis, the North-Central zone reported the highest average kerosene price at N2,194.05, while the Southeast recorded the lowest at N1,718.89.
The data underscores the growing financial pressure on Nigerians as energy prices continue to rise significantly.
