The international organisation disclosed this in its Geoeconomics of Development report, released at the weekend, highlighting the uneven impact of rising energy costs across countries, particularly in developing economies.
According to the report, Nigeria’s diesel pump price recorded an 82.7 per cent increase during the six-month period, placing the country ahead of other economies experiencing sharp increases in domestic fuel prices.
The findings come amid renewed pressure on Nigeria’s energy market, with higher diesel costs raising concerns about household purchasing power, business operating expenses and the prices of goods and services.
While Nigeria recorded the steepest increase in diesel prices, Myanmar experienced the highest rise in petrol prices globally, at 50.7 per cent.
The United Arab Emirates followed with a 49.8 per cent increase in petrol prices, while Malaysia recorded a 48.4 per cent rise over the period under review.
UNCTAD noted that although the energy shock affected countries worldwide, its consequences varied significantly across economies, with developing countries, particularly in Africa and Asia, experiencing some of the sharpest increases in domestic fuel prices.
The report warned that rising energy costs could weaken household purchasing power by reducing real incomes and limiting the amount of money available for other essential expenses.
Higher fuel prices can also increase the cost of transportation, electricity generation, manufacturing and distribution, placing additional financial pressure on businesses and consumers.
For Nigeria, where many businesses and households depend on diesel-powered generators to supplement electricity supply, sustained increases in the price of the commodity could further strain operating budgets and household finances.
Manufacturers, logistics operators, retailers and small businesses that rely on diesel for daily operations may face higher production and distribution costs. Such increases could eventually be passed on to consumers through higher prices for goods and services, depending on market conditions.
The UNCTAD findings come against the backdrop of another increase in Nigeria’s diesel market.
At the weekend, Dangote Refinery raised its gantry price of diesel by N100 per litre, from N1,700 to N1,800, representing a fresh upward adjustment following an earlier price reduction.
The latest increase could add to pressure on downstream prices as depot operators and retailers respond to changes in wholesale supply costs.
Diesel was selling at retail outlets in Abuja for between N1,920 and N1,990 per litre, according to the figures provided in the report.
The prevailing retail prices highlight the additional costs faced by businesses and consumers purchasing diesel for transportation, commercial activities and alternative power generation.
The latest developments also underscore the importance of energy prices to Nigeria’s broader economic outlook. Higher fuel costs can affect household consumption, business profitability and the cost of moving goods across the country.
UNCTAD’s warning that energy shocks disproportionately affect developing economies points to the wider economic risks associated with sustained increases in fuel prices, particularly where households and businesses have limited room to absorb additional expenses.
With Nigeria recording the world’s highest diesel price increase during the period covered by the report, further movements in domestic fuel prices will remain significant for businesses, consumers and policymakers monitoring inflationary pressures and the cost of living.