The average retail price of diesel rose in October 2025, climbing by 9.45 percent month-on-month to N1,398.57 per litre.
This is according to the latest Automotive Gas Oil (Diesel) Price Watch released by the National Bureau of Statistics (NBS).
This marks a notable increase from the N1,277.81 per litre recorded in September 2025.
Despite the month-on-month surge, diesel prices were slightly lower than they were a year earlier.
The NBS report shows a 2.96 percent year-on-year decline, dropping from N1,441.28 per litre in October 2024 to N1,398.57 in October 2025.
The trend reflects ongoing fluctuations in global oil prices, foreign exchange pressures, and domestic supply challenges that continue to shape the local energy market.
According to the NBS, Enugu recorded the highest average price at N1,468.29 per litre, followed closely by Niger at N1,465.69 and Jigawa at N1,437.40.
These states remain among the regions where logistics constraints, longer supply routes, and market inefficiencies tend to push up fuel costs.
Conversely, the lowest prices were recorded in Katsina (N1,301.24), Edo (N1,307.84), and Kebbi (N1,308.94), where improved supply access and competitive market conditions appear to have kept prices below the national average.
The report also highlights zonal variations in diesel pricing. The South East zone posted the highest regional average at N1,415.85 per litre, while the South South zone recorded the lowest at N1,387.18.
These differences demonstrate the uneven distribution of fuel supply infrastructure and the varying impacts of transportation costs across Nigeria’s geopolitical zones.
Diesel remains a critical energy source for transportation, manufacturing, and private power generation. A nearly 10 percent price increase in just one month means businesses—especially SMEs—will face higher production and logistics costs. This may lead to increased prices of goods and services, further fuelling inflationary pressures.
With trucks, buses, and haulage companies heavily reliant on diesel, the upward price movement will likely raise the cost of transporting food, raw materials, and consumer goods across the country. This could worsen food inflation and increase the cost of living, particularly in regions far from supply hubs.
The wide price gaps between states and regions show persistent structural issues in fuel distribution. States in the South East and parts of the North bearing higher costs may experience deeper economic strain compared to zones where prices remain below average.
In October, President Bola Tinubu approved a 15 percent ad-valorem import duty on diesel and premium motor spirit (PMS), commonly known as petrol.
A few days later, Naijaonpoint reported that the federal government had suspended its implementation.
A few days later, Naijaonpoint reported that the federal government had suspended its implementation.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reports that Nigerians consumed an average of 17.13 million litres of diesel daily in October.