The cost of diesel peaked at N707 per litre in some states in Nigeria leaving manufacturers to grapple with high cost and inflation.
Diesel price is selling for an average of N654.46 recorded in April 2022 which is 175.92 per cent up from N237.19 price in April 2021, according to the ‘Automotive Gas Oil’ data released by the National Bureau of Statistics.
The average price of diesel in April 2022 was N707 in Ogun State, while in Abuja and Oyo, the commodity was sold at N706.00 and N704.00 respectively as of May.
The Russian- Ukraine war worsened the price of diesel and gas in Nigeria where the commodities are imported, the government admitted.
Manufacturers are battling the high cost of powering their plants and the rising inflation which rose to 16.82 per cent in April.
The power sector has witnessed three national grid failures in 25 days between March 14 and the first week of April, 2022.
Both small and big companies rely on diesel to run their plants as a result of the power sector challenges, the Director General of the Centre for the Promotion of Private Enterprise, Muda Yusuf had said.
Cost of raw materials has risen exponentially over the last one year.
For instance, bread bakeries have said that milk price has risen from N72,000 to N80,000 between February 10, 2022 to April 25, 2022, while flour rose from N19,000 per bag to N24,500 during the same period.
Sugar has also risen from N20,500 to N25,000, while flavour is currently at N8,000, up from the N6,500 sold on February 10 this year.
According to the President, Premium Bakers Association of Nigeria, Emmanuel Onuorah, diesel was not considered as a major cost driver when the price was around N200/litres.