Nigeria’s petrol consumption recorded a slight decline in the first half of 2026 as persistently high pump prices continued to influence consumer spending and fuel usage across the country. Fresh data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed that Nigerians consumed 9.316 billion litres of Premium Motor Spirit (PMS) between January and June 2026, down from 9.368 billion litres during the same period in 2025. Although the reduction of 52 million litres represents just a 0.56 percent drop, analysts say it signals a gradual shift in consumption habits as households and businesses adjust to the realities of a fully deregulated fuel market.
The decline comes after the removal of petrol subsidies and the steady rise in fuel prices nationwide. According to the regulator, the average retail price of petrol climbed to between ₦1,284.50 per litre in Lagos and ₦1,393 per litre in Maiduguri by June 2026, compared to prices ranging from ₦910 to ₦982.50 per litre in November 2025. With transport and operating costs increasing significantly, many Nigerians have been forced to cut back on fuel usage, seek alternative means of transportation, or adopt stricter fuel-saving measures. Monthly consumption figures reflected these adjustments, with demand falling sharply after January before recording only modest recoveries in subsequent months.
Despite weaker demand, Nigeria’s domestic refining industry achieved a major milestone during the same period. Local refineries supplied approximately 6.609 billion litres of petrol, accounting for nearly 78 percent of the country’s total fuel supply, while imports contributed just over 22 percent. The growing contribution from local production highlights the country’s gradual transition away from dependence on imported petrol. However, June recorded a temporary increase in fuel imports after domestic refinery receipts declined, demonstrating that imports still play a critical role in stabilizing supply whenever local production slows.
The Dangote Petroleum Refinery remained the biggest driver of Nigeria’s domestic fuel supply, operating above its installed capacity with an average utilisation rate of 101.36 percent in June 2026. During the month, the refinery produced an average of 39.1 million litres of petrol daily, supplying 32.5 million litres to the local market while exporting part of its output. Even with this impressive production level, the NMDPRA disclosed that Nigeria maintained only 20 days of petrol reserves, falling short of its recommended 30-day stock benchmark. This suggests that while domestic refining has strengthened supply, the country still faces challenges in building adequate strategic fuel reserves.
Industry observers believe the latest figures reflect a new reality for Nigeria’s downstream petroleum sector. While consumers continue to adjust to significantly higher fuel prices—driven by subsidy removal, naira depreciation, and global crude oil market disruptions—local refining is steadily transforming the nation’s energy landscape. Recent reports also show that Nigeria recorded Africa’s highest petrol price increase during the first half of 2026, largely due to geopolitical tensions in the Middle East that pushed crude oil prices above $100 per barrel and disrupted global supply routes. As deregulation deepens and domestic refining capacity expands, the country’s fuel market is expected to become more competitive, although affordability remains a major concern for millions of Nigerians.
source: punch
