Amid lamentations over rising energy costs, Nigerians spent about N11.3 trillion on Premium Motor Spirit (petrol) between January and July 2026 to power their vehicles and electricity generators, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The NMDPRA July 2026 midstream and downstream statistics showed that approximately 10.37 billion litres of petrol were trucked into the domestic market during the seven months.
An analysis of the monthly volumes against average prevailing petrol prices showed that Nigerians spent N11.3tn on the commodity between January and July this year.
Once subsidised, petrol is the most-used fuel in Nigeria for cars, buses, bikes, tricycles and power generators. Diesel is mainly used by trucks and industries. The removal of petrol subsidies by President Bola Tinubu in 2023 triggered a sharp rise in petrol prices from N175 to the current N1,310 per litre.
According to the NMDPRA report, spending remained above N1tn in each of the seven months, with the monthly bill rising sharply as petrol prices increased from March.
Petrol sold for an average of N830/litre in January and February, before the price rose to N1,100/litre in March, N1,250/litre in April and N1,300/litre in May. The price subsequently moderated to N1,200/litre in June and July.
The price increases, which occurred amid heightened geopolitical tensions involving the United States and Iran, meant that Nigerians continued to spend heavily on petrol even as demand weakened.
In January, about 1.87 billion litres of petrol were consumed, resulting in expenditure of approximately N1.55tn. Consumption fell to 1.59 billion litres in February, with Nigerians spending N1.32tn on the product. However, despite lower volumes, monthly spending increased significantly from March as petrol prices climbed.
About 1.47 billion litres were consumed in March, costing consumers about N1.61tn. The April bill climbed to N1.92tn, despite consumption of about 1.53 billion litres, while May expenditure stood at N1.87tn on 1.44 billion litres.
In June, Nigerians spent N1.71tn on about 1.42 billion litres, while July recorded the lowest monthly volume of the seven-month period at approximately 1.11 billion litres, with expenditure still reaching N1.33tn.
The figures highlight the impact of higher petrol prices on household and business expenditure, with the country’s total fuel bill remaining above N11tn despite consumption falling considerably from the levels recorded at the beginning of the year.
The decline in demand became particularly pronounced in July, when average daily petrol consumption fell to 35.7 million litres. This was 24.7 per cent lower than the 47.4 million litres consumed daily in June and 24.4 per cent below the 47.2 million litres recorded in July 2025.
July’s consumption was also 44 per cent below the 63.7 million litres per day recorded at the peak in December 2025. The 35.7 million litres per day recorded in July was 28.6 per cent below the 50 million litres per day benchmark for petrol demand in Nigeria.
It was also about 29.4 per cent below the 50.6 million litres per day average recorded over the 13-month period covered by the July statistics. The report shows that the sharp contraction in petrol consumption contrasted with the performance of some other petroleum products.
Diesel consumption stood at 14.7 million litres per day in July, slightly above the 14 million litres per day benchmark. This represented a five per cent increase over the stated daily demand benchmark.
Liquefied Petroleum Gas, popularly known as cooking gas, also recorded consumption above its benchmark, reaching 4.4 kilotonnes per day, compared with a benchmark of 3.9 kilotonnes per day, representing a 12.8 per cent increase.
Aviation fuel, however, recorded a substantial shortfall, with consumption standing at 1.7 million litres per day, 43.3 per cent below its three million-litre daily benchmark.
The figures point to a divergence in the downstream market, with petrol and aviation fuel consumption significantly below their stated benchmarks, while diesel and LPG remained above theirs.
For petrol, the July decline also represented the lowest daily consumption recorded on the July 2025-July 2026 chart. The development came as consumers faced substantially higher petrol prices than at the beginning of the year, increasing the amount paid for every litre even as the quantity purchased declined.
Overall, the January-July figures show that the country’s petrol expenditure remained exceptionally high, with Nigerians spending N11.3tn on 10.37 billion litres in seven months, while daily consumption had fallen well below both the 50-million-litre benchmark and the average recorded over the preceding 13 months.
Recently, energy experts and economists backed the proposal by former Vice President Atiku Abubakar for a review of the Federal Government’s petrol subsidy policy, urging President Bola Tinubu to introduce targeted measures to cushion the hardship caused by the removal of the subsidy.
The experts, who spoke separately on the development, however, warned against a blanket return to the old subsidy regime, stressing the need for transparency, accountability and proper implementation of any intervention.
They argued that while the removal of the subsidy was necessary, the Federal Government had not adequately managed its consequences, particularly the rising cost of petrol, transportation, food and other essential goods.
The Chief Executive Officer of Petroleumprice.ng Olatide Jeremiah argued that the current petrol price was too high for a country where a large proportion of the population is struggling with extreme poverty and hunger.
“It is quite unfortunate that in a country like Nigeria where 80 per cent of its citizens are poor, you allow the masses to pay N1,300 for petrol at the pump. So, you need to understand that without any government intervention, the citizens will not be able to survive N1300 at the pump.
The Petroleumprice.ng boss said the government could consider directing part of the revenue from crude oil sales towards intervention in the prices of petroleum products.
“All over the world, during this crisis between Iran and the US, most countries of the world intervened in the prices of petroleum products. Some have adopted Atiku’s model, and that helps the countries to cap and control prices, pending when it will be resolved,” he added.
Meanwhile, an energy economist, Prof. Adeola Adenikinju, said production subsidy was preferable in principle to consumption subsidy but warned that Nigeria’s history of special interests could undermine such a system.
Adenikinju also advocated improved mass transportation, saying the government should do more to reduce the burden of transportation on households.
“Another thing that I thought would be very important is the issue of mass transit. And one of the major ways through which, first of all, we provide paths for the economy is through transportation.”
He criticised the government’s CNG intervention as insufficient, particularly because of the limited availability of CNG facilities. “The CNG the government is promoting. In a lot of places, we don’t even see those CNG buses. They aren’t there; they are very insufficient to be able to cushion the effects on the poor people,” he stated.
The renewed debate over subsidy comes as the Federal Government faces increasing pressure to demonstrate how savings from the policy have benefited ordinary Nigerians.
Source: punchng.com
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