The average retail price of Automotive Gas Oil (AGO), commonly known as diesel, rose sharply to ₦1,758.26 per litre in May 2025, representing a 25.24% year-on-year increase from the ₦1,403.96 recorded in May 2024, according to the National Bureau of Statistics (NBS).
This was revealed in the NBS’s “Automotive Gas Oil (Diesel) Price Watch” report for May 2025. On a month-on-month basis, diesel prices also rose by 2.08%, climbing from ₦1,722.45 in April 2025.
Despite the diesel price increase, the NBS also reported a drop in headline inflation to 22.97% in May 2025 marking the second consecutive month of decline from 23.71% in April. Year-on-year, this represents a 10.98 percentage point decrease compared to 33.95% in May 2024, signaling a continued easing of broader price pressures.
Regional and State-by-State Breakdown
The report revealed stark regional differences in diesel pricing:
- North-Central zone (including the FCT) recorded the highest average diesel cost at ₦1,920.47 per litre.
- South-West zone had the lowest regional average at ₦1,553.19.
Breakdown by other zones:
- North-West: ₦1,769.28
- North-East: ₦1,767.21
- South-East: ₦1,632.33
- South-South: ₦1,857.19
At the state level, Benue State recorded the highest diesel price in May 2025 at ₦2,441.46 per litre, followed by:
- Adamawa State – ₦2,350.32
- Plateau State – ₦2,201.52
Conversely, the lowest average diesel prices were found in:
- Ondo State – ₦1,318.40
- Kogi State – ₦1,360.00
- Anambra State – ₦1,361.02
These trends were consistent with April 2025 data, where the same three states topped both the highest and lowest diesel price lists.
Background: Diesel Price Trends
In April 2025, diesel prices had risen by 21.72% year-on-year, increasing from ₦1,415.06 in April 2024 to ₦1,722.45. The top three most expensive states in April mirrored those in May Benue (₦2,419.30), Adamawa (₦2,284.32), and Plateau (₦2,205.13). The lowest prices were also recorded in Kogi (₦1,300.00), Ondo (₦1,313.33), and Anambra (₦1,359.27).
Implications for Consumers and Industry
The steady climb in diesel prices continues to affect transportation, logistics, and manufacturing costs, with knock-on effects for consumer prices. While the broader inflation data may signal macroeconomic stabilisation, energy costs remain a persistent pressure point for businesses and households alike.
The NBS data provides a snapshot of the uneven impact of fuel prices across Nigeria’s regions, underlining the importance of targeted policy responses, especially as diesel remains a key fuel source for power generation and transportation in the absence of reliable electricity supply.
