mORGANABLE economy watch
According to the NMDPRA data, Nigerians spent approximately N1.55 trillion on petrol in January, when consumption stood at about 1.87 billion litres at an average price of N830 per litre.
KaNo —
Nigerians spent an estimated N11.3 trillion on Premium Motor Spirit (petrol) between January and July 2026, underscoring the deepening burden of rising energy costs on households and businesses, official data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed.
The NMDPRA’s July 2026 midstream and downstream statistics showed that about 10.37 billion litres of petrol were supplied to the domestic market within the seven months.
An analysis of these volumes against prevailing retail prices indicates that expenditure on petrol remained persistently high, exceeding N1 trillion monthly despite a steady decline in consumption.
Petrol, once heavily subsidised by the government, remains the most widely used fuel in Nigeria, powering vehicles, motorcycles, tricycles, and millions of electricity generators relied upon by homes and businesses.
However, the removal of petrol subsidies in 2023 triggered a sharp rise in pump prices from about N175 per litre to an average of over N1,300 per litre in 2026, dramatically increasing the cost of energy nationwide.
Nigerians Spent 1.55tn On Fuel In January
According to the NMDPRA data, Nigerians spent approximately N1.55 trillion on petrol in January, when consumption stood at about 1.87 billion litres at an average price of N830 per litre.
In February, consumption declined to 1.59 billion litres, with total spending dropping slightly to N1.32 trillion.
Despite the reduction in volume, expenditure surged from March as prices climbed significantly. In March, Nigerians consumed about 1.47 billion litres at an average price of N1,100 per litre, resulting in a total bill of N1.61 trillion.
The upward trend continued in April, when consumption rose slightly to 1.53 billion litres, but higher prices pushed total expenditure to N1.92 trillion,the highest monthly spending recorded within the period.
In May, Nigerians spent N1.87 trillion on 1.44 billion litres at an average price of N1,300 per litre.
Although prices moderated slightly in June and July to about N1,200 per litre, total expenditure remained high, with N1.71 trillion spent on 1.42 billion litres in June and N1.33 trillion on 1.11 billion litres in July.
Consumption Decline Due To Rising Costs
The data highlights a paradox in Nigeria’s downstream petroleum market,while consumption has steadily declined due to rising costs, overall expenditure remains elevated because of the high unit price of petrol.
This represents a 24.7 per cent decline compared to 47.4 million litres recorded in June and a 24.4 per cent drop from the 47.2 million litres consumed daily in July 2025.
Even more striking is the comparison with December 2025, when daily consumption peaked at 63.7 million litres.
The July 2026 figure marks a 44 per cent decline from that peak, indicating a significant shift in consumption patterns likely driven by affordability challenges.
The 35.7 million litres per day recorded in July also falls well below Nigeria’s estimated benchmark demand of 50 million litres per day, representing a 28.6 per cent shortfall. It is equally about 29.4 per cent below the 50.6 million litres daily average recorded over the 13 months covered in the NMDPRA report.
Industry analysts say the steep drop in consumption reflects the growing inability of consumers to afford petrol at current prices, forcing many to cut back on usage, switch to alternative energy sources, or reduce travel and business activities.
In contrast to petrol, other petroleum products showed mixed performance during the same period.
Diesel consumption stood at 14.7 million litres per day in July, slightly above the 14 million litres benchmark, representing a five per cent increase.
This suggests sustained demand from industries and heavy-duty transport operators who rely on diesel.
LPG Records Increased Demand
Liquefied Petroleum Gas (LPG), commonly known as cooking gas, also recorded strong demand, with daily consumption reaching 4.4 kilotonnes—12.8 per cent above its benchmark of 3.9 kilotonnes.
Analysts attribute this to increasing adoption of cleaner cooking fuels among households, despite broader economic pressures.
However, aviation fuel recorded a significant shortfall, with daily consumption at 1.7 million litres, 43.3 per cent below its benchmark of three million litres. The decline has been linked to high operating costs faced by airlines, leading to reduced flight frequencies and higher ticket prices.
While petrol and aviation fuel usage have declined sharply, diesel and LPG continue to see steady or rising demand, reflecting shifts in industrial activity and household energy choices.
Energy experts and economists have raised concerns over the sustained high cost of petrol and its ripple effects on the broader economy.
They note that rising fuel prices have significantly increased transportation costs, food prices, and the overall cost of living, worsening hardship for millions of Nigerians.
Some experts have backed recent calls for a review of the government’s fuel pricing policy, including proposals for targeted interventions to cushion the impact of subsidy removal.
However, they caution against a return to the blanket subsidy regime that was scrapped in 2023, citing its history of inefficiencies and fiscal burden.
Chief Executive Officer of Petroleum, Olatide Jeremiah, described the current petrol price as unsustainable for a country grappling with widespread poverty.
He argued that without government intervention, many Nigerians would struggle to cope with the prevailing pump price of around N1,300 per litre.
Jeremiah noted that several countries had adopted price control measures during recent geopolitical tensions involving the United States and Iran, which disrupted global oil markets and contributed to rising fuel costs.
Similarly, energy economist Prof. Adeola Adenikinju said that while production subsidies may be more efficient than consumption subsidies in theory, Nigeria’s institutional challenges could undermine their effectiveness.
He stressed the need for transparency, accountability, and proper implementation of any intervention introduced by the government, warning that entrenched interests could derail well-intentioned reforms.
As Nigeria navigates the post-subsidy era, the latest figures highlight the delicate balance policymakers must strike between maintaining fiscal discipline and protecting citizens from the harsh realities of rising energy costs.
