Nigeria Petrol Prices Surge Despite Global Crude Oil Drop

The National Bureau of Statistics, Nigeria reported that the average retail price of petrol rose to N1,596.25 per litre in May 2026, representing a 55.31 percent increase over May 2025. State-level data showed Edo recording the highest average price at N1,722.91, while Adamawa recorded the lowest at N1,469.83. The surge was driven by the deregulation of the downstream petroleum sector and global energy disruptions caused by the closure of the Strait of Hormuz during a crisis between the United States and Iran.

Global Brent crude prices recently fell to approximately $77.5 per barrel after the United States Department of the Treasury authorized the sale of Iranian oil as part of a 60-day peace roadmap. Despite this decline, Nigerian pump prices have remained high, fluctuating between N1,150 and N1,500 in various states. Analysts attribute this lag to the deregulation of the market, where the exchange rate of the naira exerts more influence on pricing than crude costs alone.

Industry leaders and stakeholders have called for prices to reflect the lower global costs. Billy Gillis-Harry of the Petroleum Products Retail Outlets Owners Association of Nigeria urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority to increase competition through import licenses. Meanwhile, the high cost of fuel has significantly eroded worker purchasing power, with the national minimum wage of N70,000 now capable of purchasing only 43.9 litres of petrol.