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Fuel Consumption Drops by 52m Litres Amid Higher Prices
Nigeria’s petrol consumption fell by 52 million litres in the first half of 2026, as persistently higher pump prices moderated demand despite increased domestic refining.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed total consumption at 9.316 billion litres between January and June, compared with 9.368 billion litres in the same period of 2025.
Average retail prices surged following subsidy removal and deregulation, ranging from N1,284.50 per litre in Lagos to N1,393 in Maiduguri in June 2026, compared with N910–N982.50 in late 2025.
Daily consumption dropped to as low as 46.3 million litres in May, before recovering slightly to 47.4 million litres in June.
Domestic refining became the dominant source of supply, providing 77.9 per cent of petrol in the first half of the year. Local refineries supplied 6.6 billion litres, while imports accounted for 1.87 billion litres.
The Dangote Refinery played a central role, producing 39.1 million litres per day in June, supplying 32.5 million litres locally, exporting 3.4 million litres, and ending the month with 410.7 million litres in stock.
Despite the increased local output, Nigeria’s reserves remained below benchmark levels. The NMDPRA reported 20 days of petrol sufficiency in June, short of the required 30 days.
Diesel sufficiency stood at 37 days, aviation fuel at 73 days, and LPG at 16 days. Officials warned that supply shocks could still affect stability despite growing refining capacity.
The Major Energies Marketers Association of Nigeria (MEMAN) noted that geopolitical tensions in the Middle East, including the closure of the Strait of Hormuz, drove global crude prices above $100 per barrel and disrupted shipping routes.
Nigeria’s deregulated market transmitted the shock directly to consumers, with petrol prices rising 39.5 per cent in the first half of 2026 — the sharpest increase across Africa.
