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The Traffic NG

Diesel prices surged sharply to about ₦1,450 per litre across major Nigerian cities within 24 hours, intensifying cost pressures on businesses and households already grappling with inflation.

The sudden hike, confirmed by depot owners and independent marketers on Wednesday, reflects a combination of rising global crude oil prices, exchange rate volatility and tightening supply chains.

Transporters, manufacturers and small business owners were among the hardest hit, warning that the increase could trigger another round of price adjustments for goods and services. Many logistics operators said they had already begun reviewing freight charges, while some manufacturing firms hinted at scaling down operations to manage rising overhead costs.

Industry sources attributed the spike partly to fluctuations in international refined product prices and limited domestic refining capacity, which keeps Nigeria heavily dependent on imports. Marketers also pointed to increased landing costs and foreign exchange constraints as key drivers of the sudden jump.

The development has sparked concern among economic analysts, who fear it could worsen inflation and erode purchasing power. Diesel is widely used to power generators, making it a critical input for businesses operating amid unreliable electricity supply.

Some depot operators suggested prices could remain volatile in the coming weeks, depending on global oil market trends and local currency stability. However, calls are growing for urgent policy measures to cushion the impact, including support for local refining and improved energy infrastructure.

As consumers brace for higher transport fares and rising commodity prices, stakeholders say the diesel surge highlights the urgency of addressing Nigeria’s structural energy challenges.