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This study examined the Effects of Petroleum Product Price Adjustments on Inflation in Nigeria. The study employed inflation rate as a measure for inflation while Price of Petrol Per Litre, Price of Diesel Per Litre and Price of Household Kerosene Per Litre served as independent variables. The study adopted Ex-post facto research design with monthly time series data obtained from publications of National Bureau of Statistics (NBS) and the Central Bank of Nigeria Statistical Bulletin. Error correction Model was employed to determine the effects of the independent variables on inflation. The findings from the study revealed that adjustments in the prices of petrol and household kerosene have significant positive effect on inflation in Nigeria whereas adjustments in the price of diesel have weak effect on inflation in Nigeria. The study therefore concludes that rising prices of petroleum products are a great contributor to inflation in Nigeria. It is therefore recommended among others that alternative sources of energy such as solar, nuclear plant, and biogas should be adopted on a large scale in Nigeria while local refining of petroleum products especially diesel should be encouraged to boost production and availability of the product.

Keywords: Petroleum Products, Petrol, Diesel, Household Kerosene, Inflation

Citation: Nwani, O.C., & Adukwu, P. (2025). Effect of Petroleum Product Price Adjustments on Inflation in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 10(2), 98-106.