Business owners and worship centres are feeling the heat following the spike in the prices of diesel (Automotive Gas Oil) across the country.
Since the outbreak of the ongoing crisis in the Middle East, causing major disruption in global oil supply, things have not remained the same for Nigerian businesses as prices of petrol and diesel skyrocketed
From N1,362 per litre in January, diesel price is hovering around N1,750 and N1,900 per litre as of March 30, 2026, depending on locations.
Petrol is also selling between N1,320 and N1,360 per litre in most retail outlets in Lagos.
While Nigerians are banking on Dangote Refinery to ensure adequate supply, the rising diesel price is biting harder on business owners, who rely on diesel for transportation/logistics and powering generators.
Speaking, an Executive Director in one of the microfinance banks, Mr Ayowole Thomas, said the high cost of diesel is already affecting the company’s services to customers.
According to him, the amount the company spent on diesel in the last four weeks has doubled.
“We bought 50 litres today, Monday, at petrol station at N1,800 per litre,” he said.
He explained that the erratic power supply by DisCos contributed to the high spending on diesel to power the company’s generating set.
Another person, a facility manager, said the rising cost of diesel has led to an increase in service charge in some of the retail malls he is managing.
In the last two weeks, he said that expenses on diesel to power the generators have soared, blaming the situation on failure of Disco to supply electricity.
He is appealing to the government to intervene by having a crucial discussion with Dangote Refinery on the way out.
President of the Nigerian Institute of Town Planners, Dr Chime Ogbonna, said that spikes in the prices of petroleum products have impacted the building industry negatively as contractors rely on diesel to transport sharp sand, granite, cement and other building materials to site.
This scenario, he said, would lead to an increase in the cost of building development.
The Nigerian Tribune observes that some of religious centres, especially churches, now ration their fuel by shutting their generators until the main service.
Managing Director, Reohabilis Ltd, Mr Kunle Awobodu, said that diesel price hike is already affecting the housing sector.
He pointed out that contractors have started calling for project cost review due to the rising price.
He said most of the heavy equipment being used in construction sites is diesel engines, adding that high cost of diesel meant high construction costs for contractors and investors.
Report has ranked Nigeria below Philippines as number two among countries with highest price of diesel at 78 percent increase since the start of the US-Isreal-Iran war.
The report noted that Philippines and Nigeria import nearly all their diesel at market price without subsidies, reason for the immediate price spikes.
“Philippines +81.6 percent, Nigeria +78.3 percent, Malaysia +57.9 percent, USA +41.2 percent, Germany +30.9 percent, Russia +0.5 percent, India 0 percent, Saudi Arabia 0 percent,” the report noted.
The report noted that the diesel price increase hit hardest “where there’s no domestic production, no subsidies and no alternative supply”.
Reacting, former MEMAN Chairman, Adetunji Oyebanji, pointed out that despite local refining, prices in Nigeria are rising at a faster rate than in other countries. “So we are in dilemma,” he said.
“To me, this is the result of having a single source of supply. Where there is no competition, the dominant player determines the price. We all willingly accepted it, so we have to live with the consequences,” he said.
MEMAN’s Clement Isong noted that no West African country is similarly impacted.