The sharp rise in petrol prices across Nigeria has significantly changed consumer spending habits, with millions of Nigerians cutting back on fuel purchases during the first half of 2026. A new report released by the Major Energies Marketers Association of Nigeria (MEMAN) reveals that average daily petrol consumption dropped by 22.3 percent between January and June as soaring pump prices forced households and businesses to rethink their fuel usage. The report paints a picture of a market where consumers are becoming more responsive to price increases following the deregulation of the downstream petroleum sector.
According to MEMAN, the average pump price of Premium Motor Spirit (PMS) climbed from about ₦1,035 per litre in January to a peak of ₦1,596 per litre in May, before easing slightly to around ₦1,300 per litre in June. The association attributed the price surge largely to global events, particularly the Middle East conflict that disrupted oil shipping routes after the temporary closure of the Strait of Hormuz. The longer shipping routes, coupled with rising freight and insurance costs, increased the landing cost of imported fuel, making Nigeria one of the hardest-hit African countries, with petrol prices rising by nearly 40 percent during the height of the crisis.
The impact of the price increase was felt beyond petrol alone. MEMAN reported that average daily petrol consumption fell from about 60 million litres in January to approximately 46 million litres in May, recovering only slightly in June. Diesel consumption also declined by 17.5 percent as pump prices surged from ₦1,362 to as much as ₦3,277 per litre, while cooking gas (LPG) prices jumped from ₦1,086 to ₦1,800 per kilogramme, leading to a noticeable drop in usage. The report described this trend as strong evidence that Nigerian consumers are adjusting their purchasing decisions in response to rising energy costs.
Despite the pressure on consumers, the report highlighted the growing importance of local refining in stabilizing the country’s fuel supply. MEMAN credited the Dangote Petroleum Refinery with supplying the bulk of locally refined petrol during the review period, increasing its market share substantially while operating above its installed production capacity in May. Waltersmith Refinery also expanded its output, helping domestic refineries account for nearly 79 percent of petrol supplied nationwide. However, local production was still insufficient to meet total demand during parts of the year, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to approve additional fuel imports to prevent shortages.
Looking ahead, MEMAN believes the second half of 2026 will focus on strengthening Nigeria’s energy security through a balanced combination of domestic refining, strategic fuel reserves, and carefully managed imports. The association also identified the proposed Initial Public Offering (IPO) of the Dangote Refinery as a major development that could boost transparency and investor confidence in Nigeria’s downstream oil sector. While Nigeria continues to enjoy some of the lowest petrol prices in West Africa, MEMAN stressed that building a National Strategic Petroleum Stock and maintaining effective regulation will be critical to protecting the country from future global supply disruptions and ensuring long-term stability in the energy market.
source: Leadership
