Diesel Prices Surge 9.45% in October to N1,398/Litre Amid Supply and Market Pressures

Nigeria’s average retail diesel price rose sharply in October 2025, climbing 9.45 percent month-on-month to N1,398.57 per litre, according to the latest Automotive Gas Oil (Diesel) Price Watch from the National Bureau of Statistics (NBS). This represents a notable increase from September’s N1,277.81 per litre, signaling rising energy costs for households and businesses across the country.

Despite the month-on-month surge, diesel remains slightly cheaper than a year ago, with a 2.96 percent year-on-year decline from N1,441.28 per litre in October 2024. Analysts attribute these fluctuations to ongoing changes in global oil prices, foreign exchange pressures, and domestic supply constraints, highlighting the volatility in Nigeria’s energy market.

Regional variations in diesel pricing continue to reflect infrastructure and logistical challenges. Enugu recorded the highest average price at N1,468.29 per litre, followed by Niger (N1,465.69) and Jigawa (N1,437.40), while Katsina (N1,301.24), Edo (N1,307.84), and Kebbi (N1,308.94) posted the lowest prices. The South East zone saw the highest regional average at N1,415.85, while the South South recorded the lowest at N1,387.18.

The rise in diesel prices has broader economic implications. SMEs and transportation companies, which heavily rely on diesel for manufacturing and logistics, will face increased operational costs. This could translate to higher prices for goods and services, fueling inflation and raising the cost of living, particularly in regions farther from supply hubs.

Government interventions continue to influence the market. President Bola Tinubu approved a 15 percent ad-valorem import duty on diesel and petrol in October, though its implementation was later suspended. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reports an average daily diesel consumption of 17.13 million litres, underscoring the critical role of diesel in powering Nigeria’s economy.

source: Nairametrics