Key points
The average retail price of diesel rose to N3,277.47 per litre in May 2026, representing an 86.4 per cent increase from the same period last year.
Diesel prices climbed by 32.44 per cent month-on-month from N2,474.69 recorded in April 2026.
Nasarawa, Plateau and Ebonyi recorded the highest diesel prices, while Kogi posted the lowest average price nationwide.
Main story
The National Bureau of Statistics (NBS) has reported a sharp increase in the average retail price of Automotive Gas Oil (diesel), with consumers paying N3,277.47 per litre in May 2026.
According to the Bureau’s latest Diesel Price Watch released in Abuja on Wednesday, the average price represents an increase of 86.4 per cent compared to the N1,758.26 recorded in May 2025.
The report also showed a significant month-on-month rise, with diesel prices increasing by 32.44 per cent from N2,474.69 per litre recorded in April 2026.
The latest figures underscore the continued pressure on transportation, logistics, manufacturing and other sectors that rely heavily on diesel-powered operations.
State-by-state analysis revealed considerable variations in diesel prices across the country.
Nasarawa State recorded the highest average retail price at N3,785.84 per litre, followed by Plateau at N3,576.40 and Ebonyi at N3,574.75.
On the other hand, Kogi State recorded the lowest average retail price of diesel at N2,823.85 per litre, while Benue and Kebbi followed at N2,961.33 and N3,016.14 respectively.
Regional analysis showed that the North-West recorded the highest average diesel price at N3,313.60 per litre.
The South-West posted the lowest regional average price at N3,227.55 per litre, although prices across all geopolitical zones remained significantly elevated compared to previous years.
The sustained increase in diesel prices comes amid broader concerns over energy costs, inflationary pressures and the rising cost of doing business across the country.
The issues
Diesel remains a critical fuel source for Nigeria’s transportation, manufacturing, telecommunications, construction and power generation sectors.
Many businesses, particularly those dependent on generators due to unstable electricity supply, rely heavily on diesel to sustain operations.
The sharp increase in diesel prices is expected to raise operating costs for businesses, increase logistics expenses and contribute to higher prices of goods and services across the economy.
Analysts have warned that persistent increases in energy costs could further strain businesses already grappling with inflation, foreign exchange challenges and rising production costs.
What’s being said
According to the NBS:
The average retail price of diesel rose from N1,758.26 per litre in May 2025 to N3,277.47 in May 2026.
The year-on-year increase stands at 86.4 per cent.
Diesel prices also rose by 32.44 per cent compared to April 2026.
Nasarawa recorded the highest average diesel price nationwide.
Kogi recorded the lowest average retail price during the review period.
The North-West had the highest regional average price, while the South-West recorded the lowest.
The figures reflect the growing burden of energy costs on households and businesses across Nigeria.
What’s next
Industry stakeholders will be closely monitoring developments in the downstream petroleum sector, exchange rate movements and supply chain conditions that influence diesel pricing.
Businesses may increasingly explore alternative energy sources, energy efficiency measures and renewable power solutions to reduce dependence on diesel.
Economists also expect diesel prices to remain a key factor influencing inflation, transportation costs and overall business performance in the coming months.
Bottom line
The latest NBS data highlights a significant surge in diesel prices, with consumers paying nearly double what they paid a year ago. As one of the most important fuels powering Nigeria’s economy, sustained increases in diesel costs are likely to have far-reaching implications for businesses, transportation, production costs and inflationary trends nationwide.
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