By Tony Obiechina, Abuja
Rising fuel prices tightened pressure on Nigerian businesses and households in May 2026 as diesel, petrol and kerosene all remained significantly above year earlier levels, raising concerns over higher transportation, manufacturing and distribution costs across the economy.
Latest fuel price reports released by the National Bureau of Statistics (NBS) showed that diesel recorded the steepest increase among the three major petroleum products, with petrol also posting strong gains, while kerosene remained elevated despite a slight monthly decline.
The figures suggest that energy costs continue to be a major driver of inflationary pressures, particularly for manufacturers, transport operators, farmers and small businesses that depend heavily on fuel to power operations.
Diesel, widely regarded as the backbone fuel for industry and logistics, rose by 86.4 per cent year on year to an average of ₦3,277.47 per litre in May 2026 from ₦1,758.26 in May 2025.
The product also recorded a sharp 32.44 per cent increase from ₦2,474.69 per litre in April.
The increase is expected to further raise production expenses for factories and increase haulage and distribution costs for businesses nationwide.
Nasarawa recorded the highest diesel price at ₦3,785.84 per litre, followed by Plateau at ₦3,576.40 and Ebonyi at ₦3,574.75. Kogi posted the lowest average price at ₦2,823.85 per litre.
Petrol prices also remained on an upward trend. The average retail price of Premium Motor Spirit rose by 55.31 per cent to ₦1,596.25 per litre from ₦1,027.76 recorded in May 2025.
On a month on month basis, petrol prices increased by 4.13 per cent from ₦1,532.93 per litre in April.
The rise continues to affect transportation costs and consumer spending power, with businesses likely to pass increased logistics expenses to customers.
Edo recorded the highest average petrol price at ₦1,722.91 per litre, followed by Bauchi at ₦1,715.47 and Benue at ₦1,698.57, while Adamawa recorded the lowest average price at ₦1,469.83.
Although household kerosene prices eased slightly during the month, the product remained significantly more expensive than a year ago.
The average retail price of kerosene declined marginally by 0.17 per cent to ₦2,971.94 per litre in May from ₦2,976.94 in April. However, the price remained 36.62 per cent higher than the ₦2,175.29 recorded in May 2025.
Similarly, the average retail price per gallon fell by 10.8 per cent month on month to ₦11,949.39 but was still 40.88 per cent above the ₦8,482.22 recorded a year earlier.
Sokoto recorded the highest kerosene price at ₦3,984.09 per litre, while Bayelsa had the lowest at ₦2,018.79.
The combined rise in diesel and petrol prices poses a greater threat to business profitability than the modest decline in kerosene, as both fuels play critical roles in transportation, manufacturing, agriculture and power generation, according to observers.
With diesel now averaging more than ₦3,200 per litre and petrol approaching ₦1,600 per litre nationwide, businesses face growing operational costs that could ultimately translate into higher prices for goods and services, adding further pressure to inflation and consumer purchasing power.
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