Nigeria’s diesel market continues to face mounting price pressures, as the average retail cost of Automotive Gas Oil (AGO) surged to ₦1,813.81 per litre in June 2025 reflecting a 23.98% year-on-year increase, according to the latest report by the National Bureau of Statistics (NBS).
The data, published in the “Automotive Gas Oil (Diesel) Price Watch” for June 2025, also highlights a 3.16% month-on-month price increase, up from ₦1,758.26 recorded in May.
Northern States Dominate High-End Diesel Prices
The three states with the highest average retail diesel prices in June were:
- Benue – ₦2,541.46/litre
- Adamawa – ₦2,355.32/litre
- Plateau – ₦2,236.42/litre
This continues a consistent trend seen over recent months, as these states also led diesel pricing in April and May, indicating persistent supply chain or logistics challenges in the North.
In contrast, Ondo (₦1,365.71), Anambra (₦1,391.02), and Kogi (₦1,400.00) offered the lowest diesel prices nationwide, providing some relief for consumers in the southern and central regions.
Geo-Political Zone Breakdown:
The diesel price variations across Nigeria’s six zones tell a deeper story:
| Geo-political Zone | June 2025 Avg. Price (₦/L) |
|---|---|
| South-South | ₦1,963.86 |
| North-Central | ₦1,958.38 |
| North-West | ₦1,807.80 |
| North-East | ₦1,799.37 |
| South-East | ₦1,691.17 |
| South-West | ₦1,618.74 |
The South-South region topped the chart, possibly driven by high transportation and distribution costs due to challenging terrain and infrastructural issues, despite its proximity to oil-producing hubs.
Meanwhile, South-West consumers enjoyed the most affordable diesel, averaging ₦1,618.74 per litre likely influenced by better logistics, port access, and fuel import dynamics in Lagos and surrounding areas.
Price Trends Over the Last Quarter
In May 2025, diesel prices averaged ₦1,758.26/litre a 25.24% year-on-year increase from ₦1,403.96 in May 2024. Then, April 2025 recorded a slightly lower national average of ₦1,722.45.
The repeated appearance of Benue, Adamawa, and Plateau as the most expensive states and Ondo, Anambra, and Kogi as the least expensive shows entrenched regional disparities in diesel pricing across three consecutive months.
Implications for Businesses and Households
The price spike comes amid sustained inflationary pressures and a volatile exchange rate environment, both of which heavily influence Nigeria’s largely import-dependent diesel market.
Diesel, which powers the majority of heavy-duty transportation, private generators, and industrial machinery, remains a key driver of logistics and operating costs nationwide. Small businesses, especially those off-grid or reliant on generators, are bearing the brunt of the increases.
Energy analyst Tope Babalola, speaking with Business Insider Africa, explained, “Unless Nigeria significantly ramps up local refining capacity or stabilizes the naira, diesel will continue to strain operational budgets and deepen inflation.”
Policy Recommendations
Experts have called for the speedy rehabilitation of Nigeria’s local refineries, especially the Port Harcourt and Warri plants, as well as faster integration of modular refining initiatives.
In addition, the Dangote Refinery, which is yet to release diesel at full scale into the market, is expected to have a major impact on prices once operations stabilize.
Final Thoughts
For now, Nigerians especially those in high-priced Northern states will have to navigate the rising cost of diesel with limited short-term relief in sight.
With diesel prices surpassing ₦1,800 and continuing an upward trend, the call for localized fuel production and infrastructure improvements has never been more urgent.
