Nigerian households and businesses continued to face mounting energy costs in May 2026 as the prices of major petroleum products remained significantly above year-earlier levels, reinforcing concerns over inflation, transportation costs and the broader cost of living.
Latest fuel price data released by the National Bureau of Statistics (NBS) showed that diesel recorded the steepest increase among key petroleum products by 86.4 per cent while petrol and household kerosene also maintained elevated price levels despite mixed month-on-month movements.
According to the report, the average retail price of Automotive Gas Oil (Diesel) rose by 86.40 per cent year-on-year to N3,277.47 per litre in May 2026 from N1,758.26 recorded in May 2025. On a monthly basis, diesel recorded a sharp increase of 32.44 per cent from N2,474.69 in April 2026.
Premium Motor Spirit (Petrol) similarly remained under upward pressure. The average retail price paid by consumers increased to N1,596.25 per litre in May 2026, representing a 55.31 per cent rise compared with N1,027.76 recorded in the corresponding period of 2025. Compared with April 2026, petrol prices rose by 4.13 per cent from N1,532.93.
Household Kerosene also remained expensive despite marginal easing within the month. The average retail price per litre stood at N2,971.94 in May 2026, reflecting a slight month-on-month decrease of 0.17 per cent from N2,976.94 recorded in April. However, on a year-on-year basis, the price increased by 36.62 per cent from N2,175.29.
The sustained rise across petroleum products highlights the extent to which energy prices continue to shape household spending patterns and business operations across the country.
Although fuel prices are measured at filling stations, their economic impact extends well beyond direct consumption. Transportation remains one of the most visible transmission channels through which higher petroleum costs affect everyday life, influencing commuting expenses, logistics costs and the prices of goods and services.
Three years after the removal of fuel subsidy and the introduction of interventions aimed at reducing pressure on consumers, transportation expenses continue to remain elevated in many urban centres. Analysts note that while petrol remains a major factor in fare determination, transport pricing is also influenced by broader operating costs including vehicle maintenance, spare parts, servicing, tyres, remittances, operational levies and uncertainty around future energy prices.
Government interventions introduced since subsidy removal have included the promotion of Compressed Natural Gas (CNG) as an alternative transport fuel, support for local refining, crude oil supply arrangements to domestic refineries in naira to reduce foreign exchange pressure, and reforms intended to improve petroleum supply and market efficiency.
Authorities maintain that these measures are designed to stabilise prices over time, lower logistics costs and improve energy accessibility. However, the latest fuel data suggest that energy expenses remain considerably above levels recorded before recent market reforms, sustaining pressure on consumers and businesses.
State-by-state analysis showed significant variations in petrol pricing across the country.
Edo recorded the highest average retail price of petrol at N1,722.91 per litre, followed by Bauchi at N1,715.47 and Benue at N1,698.57. In contrast, Adamawa, Katsina and Sokoto recorded the lowest average prices at N1,469.83, N1,470.63 and N1,489.33 respectively.
At the zonal level, the South-South recorded the highest average petrol price at N1,623.84 per litre, while the North-West recorded the lowest at N1,564.11.
For household kerosene, Sokoto recorded the highest average retail price per litre at N3,984.09, followed by Jigawa at N3,824.68 and Taraba at N3,595.64. Bayelsa posted the lowest average price at N2,018.79, followed by Kogi at N2,348.81 and Ekiti at N2,511.31.
Regional analysis showed the North-West recorded the highest average kerosene price at N3,343.12 per litre, followed by the North-East at N3,004.30, while the South-South posted the lowest at N2,777.76.
Measured by gallon, the average retail price of household kerosene stood at N11,949.39 in May 2026. Although this represented a monthly decline of 10.80 per cent from N13,396.23 in April, the price remained 40.88 per cent higher than N8,482.22 recorded in May 2025.
Sokoto recorded the highest average retail price per gallon at N15,928.39, followed by Kebbi at N15,855.73 and Niger at N14,465.43. Bayelsa recorded the lowest at N7,084.56, while Ekiti and Kwara followed at N9,300.92 and N9,419.85 respectively.
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 diesel prices were recorded in Kogi at N2,823.85, followed by Benue at N2,961.33 and Kebbi at N3,016.14.
Across the geopolitical zones, the North-West recorded the highest diesel price at N3,313.60 per litre while the South-West posted the lowest average at N3,227.55.
According to the NBS, the estimates were derived from extensive field surveys conducted across sample outlets in all 774 local government areas covering the 36 states and the Federal Capital Territory.
The exercise involved more than 10,000 respondents and was conducted by over 700 NBS personnel under monitored quality-control procedures. The estimates were generated using household expenditure weights and actual fuel purchase prices.
The latest figures indicate that despite varying monthly movements across products, petroleum prices remain substantially elevated on an annual basis, continuing to influence inflation trends, household budgets and the overall cost of economic activity across Nigeria.
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