Nigerians spend N11.3trn on petrol in seven months

Nigerians spent an estimated N11.3 trillion on Premium Motor Spirit (petrol) between January and July 2026, despite a significant decline in consumption, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The NMDPRA’s July 2026 midstream and downstream statistics showed that about 10.37 billion litres of petrol were supplied to the domestic market during the seven-month period.

An analysis of the reported monthly volumes and average pump prices indicates that the petrol bill remained above N1 trillion every month, driven largely by higher prices following the removal of the petrol subsidy.

Petrol prices averaged N830 per litre in January and February before rising to about N1,100 in March, N1,250 in April and N1,300 in May. The average price later eased to N1,200 per litre in June and July.

In January, Nigerians consumed about 1.87 billion litres, translating to an estimated N1.55 trillion expenditure. Consumption dropped to 1.59 billion litres in February, with spending put at N1.32 trillion.

The cost increased to about N1.61 trillion in March, when consumption stood at 1.47 billion litres. April recorded an estimated N1.92 trillion bill on 1.53 billion litres, while consumers spent about N1.87 trillion on 1.44 billion litres in May.

In June, approximately 1.42 billion litres were consumed at an estimated cost of N1.71 trillion. July recorded the lowest monthly volume at about 1.11 billion litres, but expenditure still reached roughly N1.33 trillion.

The figures show that Nigerians spent more on petrol even as the volume consumed declined substantially.

Average daily petrol consumption fell to 35.7 million litres in July, representing a 24.7 per cent drop from the 47.4 million litres recorded daily in June.

The July figure was also 24.4 per cent below the 47.2 million litres consumed daily in July 2025 and 44 per cent lower than the 63.7 million litres per day recorded at the peak in December 2025.

It was further 28.6 per cent below the 50 million litres daily benchmark for petrol demand and about 29.4 per cent below the 50.6 million litres average recorded during the 13-month period covered by the NMDPRA statistics.

Consumption trends for other petroleum products were different.

Diesel demand averaged 14.7 million litres per day in July, exceeding the 14 million-litre benchmark by five per cent. Liquefied Petroleum Gas consumption also surpassed its benchmark, reaching 4.4 kilotonnes daily compared with 3.9 kilotonnes, an increase of 12.8 per cent.

Aviation fuel consumption, however, remained below its benchmark, averaging 1.7 million litres per day against the three million-litre benchmark, a shortfall of 43.3 per cent.

The continued decline in petrol consumption has renewed concerns over the impact of high fuel prices on households and businesses, particularly as transportation costs feed into the prices of food and other essential commodities.

The development has also revived calls for government intervention in the petrol market. Energy experts and economists recently backed former Vice-President Atiku Abubakar’s proposal for a review of the Federal Government’s petrol subsidy policy, while cautioning against returning to the previous blanket subsidy system.

The Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, said the prevailing petrol price was too high for a country where many citizens were struggling with poverty and rising living costs.

Jeremiah suggested that part of the revenue generated from crude oil sales could be channelled into measures aimed at moderating petroleum product prices.

He said other countries had introduced interventions to cushion consumers from energy price shocks arising from global geopolitical tensions.

An energy economist, Prof. Adeola Adenikinju, said a production subsidy would be preferable to a consumption subsidy but warned that Nigeria’s history of vested interests could create challenges.

Adenikinju also called for greater investment in mass transportation as part of efforts to reduce the burden of high fuel prices on households.

He criticised the limited availability of compressed natural gas buses and facilities, arguing that the existing CNG intervention was not sufficient to protect poorer Nigerians from the effects of rising transport costs.

The renewed subsidy debate comes as the Federal Government faces growing pressure to demonstrate how savings from the removal of the petrol subsidy have translated into tangible benefits for Nigerians.