In May 2026, Nigerian households are experiencing increased financial pressure. Petrol and cooking gas prices have increased, while diesel is driving up business expenses. Rising energy costs now impact transport, food, power, and household income.
Cooking gas is priced between ₦1,500 and ₦1,600 per kilogram in most markets. A 12.5kg cylinder costs approximately ₦18,750 to ₦20,000.
Petrol prices have also risen. In Lagos, NNPC stations sell around ₦1,320 per litre. In Abuja, prices are around ₦1,364. In some northern states, petrol sells close to ₦1,395 per litre.
Diesel remains high at about ₦1,758 per litre nationally.
As a result, Nigerians are paying more for cooking, transportation, work, and business operations.
Petrol Prices Remain High
Petrol prices increased significantly in late April and have remained elevated throughout May.
The increase followed Dangote Refinery’s ex-depot price adjustment from ₦1,200 to ₦1,275 per litre. NNPCL and other marketers quickly raised pump prices.
Dangote Refinery now serves as a key price indicator in Nigeria’s downstream market. Marketers adjust prices promptly in response to changes at the refinery.
That is why consumers feel price changes almost immediately.
Why Petrol Costs More in the North
Petrol is usually cheaper in Lagos, Ogun and parts of the South-West than in states such as Yobe, Borno, Adamawa, Sokoto and Kano.
The reason is logistics.
Nigeria’s limited pipeline infrastructure necessitates fuel transportation by road tankers. Longer distances increase transport costs, security risks, and additional charges.
As a result, petrol prices are higher in the northern states.
Cooking Gas Is Now a Household Crisis
Cooking gas has become one of the biggest household expenses.
At ₦1,500 to ₦1,600 per kilogram, a 12.5kg refill costs around ₦18,750 to ₦20,000.
For individuals earning the ₦70,000 minimum wage, a single refill can consume over a quarter of their monthly income.
This presents a significant food security concern.
Many households are reducing cooking, using smaller burners, or reverting to charcoal, firewood, and kerosene.
Why Cooking Gas Prices Are Rising
Cooking gas prices are increasing due to global energy costs, foreign exchange pressures, depot shortages, and distribution challenges.
Lagos has better depot access than many states. Areas farther from supply hubs pay more.
That is why gas prices vary widely across the country.
Diesel Is Crushing Businesses
Diesel remains costly at approximately ₦1,758 per litre.
This impacts factories, hospitals, schools, hotels, restaurants, supermarkets, cold storage facilities, and small businesses that depend on generators.
Rising diesel prices increase business costs, leading companies to raise prices, reduce operating hours, cut staff, or close operations.
Diesel price inflation rapidly affects food, transportation, healthcare, education, and other sectors.
Global Oil Prices Are Feeding Local Pain
Global crude oil prices rose in April and May 2026 due to tensions involving the United States, Iran and the Strait of Hormuz.
Although Nigeria produces crude oil, local energy prices remain aligned with global benchmarks.
Even with local refining, crude oil is priced in dollars. Therefore, increases in global crude prices lead to higher local petrol and diesel prices.
Domestic refining improves supply security, but it does not fully protect consumers from global oil shocks.
The Naira Problem
Foreign exchange pressures continue to be a major factor influencing energy prices.
Fuel imports, refinery inputs, LPG supply, shipping, insurance and equipment costs are affected by the exchange rate.
A weaker naira results in higher energy costs.
While Nigerians earn in naira, many energy costs are denominated in dollars. This mismatch contributes to the burden of rising prices.
What Government Should Do
Nigeria requires a comprehensive plan to ensure energy affordability.
The government should stabilize LPG supply, repair petroleum pipelines, monitor pricing, and provide support to vulnerable households.
It should also expand domestic gas supply and reduce distribution bottlenecks. A market-driven energy sector is viable, but consumer protection is necessary during the transition.sition.
Why This Crisis Matters
Energy prices affect everything.
When petrol rises, transport fares rise. When diesel rises, business costs rise. When cooking gas rises, feeding a family becomes harder.
When all three energy sources increase simultaneously, households face compounded financial strain.
This is the current situation in Nigeria as of May 2026.
Conclusion
Nigeria’s energy crisis has evolved into a broader cost-of-living crisis.
Petrol is expensive. Cooking gas is becoming unaffordable. Diesel is raising business costs. Poor infrastructure makes prices worse in many states.
Domestic refining can reduce reliance on imports, but it cannot address all challenges independently.
Global oil prices, the naira exchange rate, depot shortages and weak distribution still affect what Nigerians pay.
The government must improve infrastructure, strengthen regulation, ensure stable LPG supply, and provide targeted support to vulnerable households.
Without these measures, Nigerians will continue to face rising costs for cooking, transportation, work, and daily living.
FAQs
What is the petrol price in Nigeria in May 2026?
Petrol sells around ₦1,320 per litre in Lagos, ₦1,364 in Abuja, and close to ₦1,395 in some northern states.
How much is cooking gas in Nigeria now?
Cooking gas sells around ₦1,500 to ₦1,600 per kilogram. A 12.5kg cylinder costs about ₦18,750 to ₦20,000.
Why is fuel more expensive in northern Nigeria?
Fuel costs more in the North because products travel longer distances from supply hubs. Weak pipeline infrastructure forces marketers to move fuel by road.
Why is cooking gas expensive?
Cooking gas is expensive due to global energy prices, foreign exchange pressures, depot shortages, and distribution costs.
Why does diesel affect the wider economy?
Many businesses rely on diesel generators. When diesel prices rise, business costs rise, and those costs are passed on to consumers.
SOURCE: businesselitesafrica.com