Hope for manufacturing as diesel price drops by 5.7 per cent

The persistent energy crisis that has compounded the woes of manufacturers may have eased as diesel prices, a major source of energy for producers, dropped by 5.71 per cent from N1462.98 per litre in June 2024 to an average of N1379.48 in July 2024.

However, the National Bureau of Statistics (NBS), in its automotive gas oil (diesel) watch report for July 2024, said on a year-on-year basis, the average retail price per litre increased by 73.63 per cent, from N794.48 per litre recorded in the corresponding July 2023 to N1379.48 per litre last month.

The NBS said on state-by-state analysis, the top three states with the highest average price of the product in July 2024 include Taraba State (N1721.79), Borno State (N1694.17) and Bauchi State (N1619.54).

The top three lowest prices were recorded in Kogi State (N1186.31), Kano State (N1211.11) and Osun State (N1246.82). The zonal representation of the average price of diesel showed that North East had the highest price of N1600.85, while South West had the lowest price of N1266.57 when compared with other zones.

In a related report, the NBS said the average retail price of premium motor spirit (petrol) for July 2024 increased by 28.35 per cent from N600.35 in July 2023 to N770.54 in July 2024.

However, comparing the average price of the product in June, the average retail price increased by 2.72 per cent from N750.17. On state profile analysis, Katsina State had the highest average retail price for PMS at N950, Jigawa and Benue states were next, with N903.08 and N846.95, respectively.
Conversely, Kwara, Edo and Akwa Ibom states had the lowest average retail prices for petrol at N650, N669.75, and N673.75 respectively.

The zonal profile showed that the North-West had the highest average retail price of N820.1, while the South-South had the lowest price of N678.3. The energy crisis which results from the failure of the national grid to supply adequate electricity to the nation, especially manufacturing concerns and the high cost of petroleum products, especially diesel and fuel, is a major contributor to the high cost of manufactured goods in the country. It has also forced many firms to shut down as they can no longer cope with the cost of operation.