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    Home » The Economics of Running a Car on Petrol vs. Diesel

    The Economics of Running a Car on Petrol vs. Diesel

    Goli InnocentBy Goli InnocentFebruary 25, 2025 Economy
    The Economics of Running a Car on Petrol vs. Diesel(Petroleumprice.ng)
    The Economics of Running a Car on Petrol vs. Diesel(Petroleumprice.ng)

    In Nigeria, where the cost of fuel and vehicle maintenance significantly impacts household budgets, choosing between a petrol-powered car and a diesel-powered vehicle is a critical decision. With petrol and diesel prices fluctuating frequently, understanding the economics of running a car on petrol versus diesel can help Nigerian drivers make informed choices. This article breaks down the key factors to help you decide which option suits your pocket better.

    Fuel Prices: Petrol vs. Diesel

    As of February 2025, the price of petrol (Premium Motor Spirit, PMS) in Nigeria is approximately ₦960 per litre depending on the region, while diesel (Automotive Gas Oil, AGO) costs around ₦1,250 per litre. At first glance, petrol appears to be the cheaper option. However, the economics of running a car go beyond just the price per litre.

    Fuel Efficiency: Diesel Offers Better Mileage

    One of the most significant advantages of diesel engines is their fuel efficiency. On average, diesel engines are 20-30% more fuel-efficient than petrol engines. This means that a diesel car can travel more kilometres per litre compared to a petrol car.

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    For example:

    • A petrol car with a fuel efficiency of 10 km/l will use 10 litres to travel 100 km.
    • A diesel car with a fuel efficiency of 15 km/l will use only 6.7 litres to cover the same distance.

    While diesel is more expensive per litre, its superior fuel efficiency can offset the higher cost, especially for long-distance drivers or commercial vehicle operators.

    Maintenance Costs: Petrol vs. Diesel

    When it comes to maintenance, diesel engines are generally more robust and durable than petrol engines. However, they also come with higher maintenance costs due to the complexity of their components.

    • Petrol Cars: Petrol engines are simpler and cheaper to maintain. Routine services such as oil changes, spark plug replacements, and general repairs are less expensive.
    • Diesel Cars: Diesel engines require more specialised maintenance, including regular servicing of fuel injectors and turbochargers. Additionally, diesel engines are more sensitive to fuel quality, which can be a concern in Nigeria where fuel adulteration is sometimes an issue.

    Initial Purchase Price

    Diesel cars are typically more expensive to purchase than petrol cars. The price difference can range from 10% to 20%, depending on the make and model. This higher upfront cost is a significant factor for many Nigerian car buyers, especially those on a tight budget.

    Environmental and Regulatory Considerations

    In recent years, there has been a global push towards cleaner energy sources, and diesel engines have faced scrutiny due to their higher emissions of particulate matter and nitrogen oxides. While this may not be a primary concern for many Nigerian car owners, it is worth noting that diesel vehicles may face stricter regulations in the future, potentially affecting their resale value and usability.

    Which is More Cost-Effective in the Long Run?

    To determine whether petrol or diesel is more economical, let’s compare the costs of running both types of vehicles over a year.

    Assumptions:

    • Annual mileage: 20,000 km
    • Petrol price: ₦960per litre
    • Diesel price: ₦1,250 per
    • Petrol car fuel efficiency: 10 km/l
    • Diesel car fuel efficiency: 15 km/l

    Calculations:

    • Petrol Car:
      • Fuel consumed: 20,000 km ÷ 10 km/l = 2,000 litres
      • Annual fuel cost: 2,000 litres × ₦960 = ₦1,920,000
    • Diesel Car:
      • Fuel consumed: 20,000 km ÷ 15 km/l = 1,333 litres
      • Annual fuel cost: 1,333 litres × ₦1,250 = ₦1,666,250

    Verdict:

    Based on fuel costs alone, the petrol car is cheaper to run by ₦1,920,000 per year. However, this does not account for maintenance costs, resale value, or the specific driving habits of the owner.

    Who Should Choose Petrol?

    • Drivers with shorter commutes or lower annual mileage.
    • Those on a tight budget who prioritise lower upfront and maintenance costs.
    • Individuals who prefer a quieter and smoother driving experience.

    Who Should Choose Diesel?

    • Long-distance drivers or commercial vehicle operators who benefit from higher fuel efficiency.
    • Those who prioritise engine durability and are willing to pay higher maintenance costs.
    • Drivers who can afford the higher upfront cost of a diesel vehicle.

    The choice between petrol and diesel ultimately depends on your driving habits, budget, and long-term financial goals. While petrol cars are cheaper to purchase and maintain, diesel vehicles offer superior fuel efficiency and durability, making them a better option for high-mileage drivers.

    As fuel prices and economic conditions continue to fluctuate, Nigerian car owners must weigh the pros and cons carefully to make the best decision for their needs.

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    Goli Innocent
    Goli Innocent

      Goli Innocent is an energy journalist and industry analyst at Petroleumprice.ng. He delivers factual, data-driven reports on Nigeria’s downstream petroleum sector. His coverage spans fuel pricing, depot updates, and market regulation. Goli Innocent blends accuracy with creativity to make complex data relatable. He doesn’t just write; he ensures every story ranks effectively online. His reports guide stakeholders, policymakers, and everyday consumers. Goli Innocent remains committed to transparency and sustainable energy reporting.

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