Nigeria’s average retail diesel price climbed sharply in October 2025, rising 9.45% month-on-month to N1,398.57 per litre, according to the National Bureau of Statistics (NBS). This represents a notable increase from N1,277.81 per litre recorded in September.
Despite the monthly surge, diesel was slightly cheaper compared to a year earlier. The NBS report shows a 2.96% year-on-year decline, dropping from N1,441.28 per litre in October 2024.
The trend reflects persistent market volatility driven by global oil price swings, foreign-exchange instability, and domestic supply challenges.
Enugu, Niger, Jigawa Top Price Chart As Regional Gaps Widen
State-by-state data shows significant price dispersion across the country. 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 often face logistics delays, longer delivery routes, and weak market efficiency.
By contrast, the cheapest diesel prices emerged in Katsina (N1,301.24), Edo (N1,307.84), and Kebbi (N1,308.94). These locations benefited from stronger supply access and more competitive local market conditions, which helped keep prices below the national average.
Zonal variations also persisted. The South East posted the highest regional average at N1,415.85 per litre, while the South South recorded the lowest at N1,387.18 per litre. These differences highlight entrenched disparities in fuel infrastructure and transportation costs across Nigeria.
The NBS also noted that Nigerians consumed an average of 17.13 million litres of diesel daily in October, underscoring the fuel’s central role in the economy.
Businesses Face Higher Costs As Policy Uncertainty Adds Pressure
Diesel remains essential for haulage, manufacturing, and private power generation. Therefore, a nearly 10% price jump in one month will immediately raise operating costs for small and medium-scale enterprises. As production and logistics expenses rise, businesses may pass the increases to consumers. Consequently, food prices, transport fares, and the cost of essential goods could climb further, worsening inflation.
The wide cost gaps between regions also signal deeper structural issues in Nigeria’s fuel distribution network. States in the Southeast and parts of the North, which already pay premium prices, may experience greater economic strain if supply challenges persist.
Meanwhile, policy uncertainty has added to market anxieties. In October, President Bola Tinubu approved a 15% ad-valorem import duty on diesel and petrol. However, the federal government suspended the policy days later after strong industry resistance.
Market analysts say such policy swings complicate planning for importers, marketers, and businesses that rely heavily on diesel-powered operations.