Nigeria’s energy inflation rate recorded a significant decline in July 2026, dropping to 4.37 per cent, according to the latest Consumer Price Index report released by the National Bureau of Statistics (NBS).
The July figure represents a 5.46 percentage-point decrease from the 9.83 per cent recorded in June, making it the lowest energy inflation rate in four months.
Energy-related inflation has fluctuated considerably throughout 2026. It stood at 11.20 per cent in January and increased to 12.57 per cent in February before declining to 9.89 per cent in March and 4.50 per cent in April. The rate then climbed to 5.73 per cent in May and 9.83 per cent in June before falling sharply in July.
Despite the latest moderation, the decline has not yet provided significant relief for many Nigerians. Households and businesses continue to contend with elevated expenses for petrol, diesel and electricity.
Data from the Central Bank of Nigeria’s latest survey showed that 60.9 per cent of businesses reported higher inflation-related spending in July, compared with 55.9 per cent of households. Energy also recorded the highest inflation-perception scores among both groups, with businesses recording 74.1 points and households 61.9 points.
The figures indicate that while the pace of energy price increases has slowed, the existing high cost of energy continues to affect household finances, transportation expenses and business operations.
The development comes amid changes and proposed reforms in Nigeria’s downstream petroleum sector. The Nigerian Midstream and Downstream Petroleum Regulatory Authority has proposed rules aimed at preventing petroleum companies from engaging in coordinated pricing, supply restrictions and market-sharing arrangements that could weaken competition.
The proposed measures followed fresh concerns over possible coordinated pricing practices in the downstream petroleum market.
Meanwhile, the Dangote Refinery cut its ex-depot petrol price to ₦1,075 per litre on July 2, following a decline in international crude oil prices.
However, developments in the international oil market remain a potential threat to further price stability. Renewed tensions involving the United States and Iran have contributed to higher crude oil prices, creating the possibility of renewed pressure on domestic fuel costs.
For Nigerian consumers and businesses, the latest decline in energy inflation offers some relief, but sustained reductions in the actual cost of energy will be crucial for easing broader cost-of-living pressures.
