The average retail price of diesel (Automotive Gas Oil) in Nigeria climbed sharply to N3,277.47 per litre in May 2026, according to the latest data released by the National Bureau of Statistics (NBS).
This represents a staggering 86.40% year-on-year increase from N1,758.26 per litre recorded in May 2025. On a month-on-month basis, the price rose by 32.44% from N2,474.69 in April.
Highest and Lowest Prices by State
Nasarawa State recorded the most expensive diesel at N3,785.84 per litre, followed by Plateau (N3,576.40) and Ebonyi (N3,574.75). The lowest average price was observed in Kogi State at N2,823.85 per litre.
Regionally, the North-West had the highest average price at N3,313.60 per litre, while the South-West recorded the lowest at N3,227.55 per litre.
Economic Implications
The sharp surge in diesel prices is exerting heavy pressure on key sectors of the economy, particularly transportation, manufacturing, power generation, and logistics. Many businesses and households that rely on diesel-powered generators are facing significantly higher operating costs, which could feed into broader inflationary trends and reduce consumer purchasing power.
Industry stakeholders have expressed concern that sustained high diesel prices may slow down economic activities and increase the cost of goods and services nationwide.
The latest NBS report underscores the ongoing challenges in Nigeria’s downstream petroleum sector, where volatile global oil prices, supply chain issues, and local market dynamics continue to influence pump prices despite efforts to boost domestic refining capacity.
