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

Nigerians are still grappling with elevated energy costs, as prices for the country's three main fuels remained substantially higher in May 2026 compared to the same period in 2025. Diesel saw the most dramatic annual increase, surging by 86.4 percent, followed by petrol, which climbed 55.31 percent, and household kerosene, up 36.62 percent. These year-on-year figures highlight the persistent fuel inflation affecting households, transportation, and businesses.

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The country will experience the consolidated start of the dry season in the Sierra, high levels of ultraviolet radiation, and a state of rough seas on the continental and insular coasts.

The National Bureau of Statistics (NBS) reported that the average retail price of Automotive Gas Oil (diesel) rose from N1,758.26 per liter in May 2025 to N3,277.47 in May 2026. Diesel also experienced the largest month-on-month increase, jumping by 32.44 percent from April 2026. This sharp rise is particularly significant as diesel is a critical input for industries, commercial transport, and businesses that rely on generators due to inconsistent power supply.

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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.

Petrol, the most consumed fuel for transportation, also continued its upward trend. The average retail price increased to N1,596.25 per liter in May 2026 from N1,027.76 a year prior, marking a 55.31 percent annual rise. The monthly increase for petrol was more moderate, at 4.13 percent from April 2026.

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Petrol, the country’s most widely consumed transport fuel, also maintained a strong upward trajectory, the NBS report showed.

Household kerosene, an important cooking fuel for many families, recorded the slowest annual price increase among the three fuels. The average retail price stood at N2,971.94 per liter in May 2026, up 36.62 percent from N2,175.29 in May 2025. Unlike diesel and petrol, kerosene prices showed a slight monthly decline of 0.17 percent from April 2026. However, the average retail price per gallon dropped by a steeper 10.8 percent month-on-month, and on a year-on-year basis, it was still 40.88 percent higher than in May 2025.

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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.