Fuel Inflation Persists as Diesel Soars 86%, Petrol Climbs 55%, Kerosene Up 37% in One Year

Emmanuel Addeh in Abuja

Nigerians continued to contend with elevated energy costs in May as the prices of the country’s three major fuels remained substantially higher than they were a year earlier, with diesel recording the sharpest annual increase of 86.4 per cent.

In the same vein, petrol rose by 55.31 per cent while household kerosene climbed by 36.62 per cent, the latest Price Watch reports released by the National Bureau of Statistics (NBS)  showed.

Although the three fuels exhibited varying monthly movements, the year-on-year figures suggested that households, transport operators, manufacturers and businesses are still paying significantly more for energy than they did in the corresponding period of 2025, underlining the persistence of fuel inflation across the economy.

According to the NBS data, the average retail price of Automotive Gas Oil (diesel) increased from N1,758.26 per litre in May 2025 to N3,277.47 in May 2026, representing an annual increase of 86.4 per cent, the highest among the three petroleum products tracked by the bureau. Diesel also posted the largest month-on-month increase, rising by 32.44 per cent from N2,474.69 recorded in April.

The sharp rise in diesel prices remained significant because the product is widely used by industries, commercial transport operators, manufacturers and businesses that rely on self-generated electricity, making it a key input cost across several sectors of the economy.

Petrol, the country’s most widely consumed transport fuel, also maintained a strong upward trajectory, the NBS report showed. The average retail price paid by consumers rose to N1,596.25 per litre in May from N1,027.76 in the corresponding period of last year, translating to an annual increase of 55.31 per cent. 

However, on a monthly basis, the increase was comparatively moderate at 4.13 per cent from the N1,532.93 recorded in April.

Household kerosene, which remains an important cooking fuel for many families despite the growing adoption of Liquefied Petroleum Gas (LPG), recorded the slowest annual increase among the three fuels. The average retail price stood at N2,971.94 per litre in May, up 36.62 per cent from N2,175.29 recorded a year earlier.

Although still too high for many families, unlike diesel and petrol, kerosene prices showed signs of easing on a monthly basis, with the average retail price per litre declining marginally by 0.17 per cent from N2,976.94 in April. 

But the average retail price per gallon dropped by a much steeper 10.8 per cent to N11,949.39 from N13,396.23 recorded in the previous month. Nevertheless, on a year-on-year basis, the average price per gallon was still 40.88 per cent higher than the N8,482.22 recorded in May 2025.

A THISDAY analysis of the three NBS reports showed that while diesel experienced the steepest annual and monthly increases, petrol prices continued to rise at a slower pace, whereas kerosene was the only fuel to record a month-on-month decline. However, all three products remained considerably more expensive than they were a year ago, underscoring the sustained pressure on household and business expenditure.

State-by-state data further highlighted wide disparities in fuel prices across the federation. For diesel, Nasarawa 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. The lowest average prices were recorded in Kogi at N2,823.85, Benue at N2,961.33 and Kebbi at N3,016.14.

Petrol prices were highest in Edo, where consumers paid an average of N1,722.91 per litre. Bauchi followed at N1,715.47, while Benue recorded N1,698.57. At the other end of the spectrum, Adamawa posted the lowest average price at N1,469.83 per litre, followed by Katsina at N1,470.63 and Sokoto at N1,489.33.

Also, household kerosene was most expensive in Sokoto, where the average retail price reached N3,984.09 per litre. Jigawa followed with N3,824.68, while Taraba recorded N3,595.64. Bayelsa had the cheapest kerosene at N2,018.79 per litre, followed by Kogi at N2,348.81 and Ekiti at N2,511.31.

On zonal analysis, it equally reflected notable variations in fuel costs across the country. The North-west recorded the highest average diesel price at N3,313.60 per litre, while the South-west posted the lowest zonal average at N3,227.55. 

For petrol, the South-south recorded the highest average retail price at N1,623.84 per litre, while the North-west had the lowest at N1,564.11.

Similarly, the North-west emerged as the most expensive zone for household kerosene at N3,343.12 per litre, followed by the North-east at N3,004.30, while the South-south recorded the lowest zonal average of N2,777.76.

Overall, the latest NBS Price Watch reports indicated that despite differing month-on-month movements across the three major fuels, energy costs remained firmly elevated in May compared to a year earlier.