By Opeyemi Adelakun
Nigerians spent an estimated N11.3tn on Premium Motor Spirit, popularly known as petrol, in the first seven months of 2026, even as the volume of fuel consumed across the country dropped significantly.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that about 10.37 billion litres of petrol entered the domestic market between January and July.
An analysis of the monthly consumption figures and prevailing pump prices showed that Nigerians spent more than N1tn on petrol in every month of the period.
The figures reveal the growing financial burden created by higher petrol prices, with consumers spending heavily despite purchasing less fuel.
Petrol averaged about N830 per litre in January and February before rising to N1,100 in March, N1,250 in April and N1,300 in May. The average price later eased to about N1,200 per litre in June and July.
January recorded the highest volume consumed during the period, at approximately 1.87 billion litres, costing consumers about N1.55tn.
Consumption fell to 1.59 billion litres in February, with expenditure standing at roughly N1.32tn.
However, rising pump prices pushed monthly expenditure higher from March despite declining consumption. Nigerians spent approximately N1.61tn on 1.47 billion litres in March, while April expenditure rose to N1.92tn on 1.53 billion litres.
In May, consumers spent about N1.87tn on 1.44 billion litres, while June recorded expenditure of approximately N1.71tn on 1.42 billion litres.
July recorded the lowest consumption of the seven-month period, with about 1.11 billion litres consumed, yet Nigerians still spent approximately N1.33tn on the product.
The latest figures indicate that the cost of fuelling vehicles, motorcycles, tricycles and petrol-powered generators remains a major pressure point for households and businesses.
The contraction in demand was particularly pronounced in July, when average daily petrol consumption fell to 35.7 million litres.
The figure represented a 24.7 per cent decline from the 47.4 million litres consumed daily in June and was 24.4 per cent below the 47.2 million litres recorded in July 2025.
July consumption was also 44 per cent below the 63.7 million litres per day recorded at the peak in December 2025.
The NMDPRA statistics further showed that July’s petrol demand was 28.6 per cent below the 50 million litres per day benchmark and about 29.4 per cent below the 50.6 million litres daily average recorded during the 13-month period covered by the report.
The decline in petrol consumption contrasted with developments in other segments of the downstream petroleum market.
Diesel consumption reached 14.7 million litres per day in July, five per cent above its 14 million-litre benchmark.
Liquefied Petroleum Gas, commonly known as cooking gas, also exceeded its benchmark, with daily consumption reaching 4.4 kilotonnes against a benchmark of 3.9 kilotonnes.
Aviation fuel recorded the sharpest shortfall among the products listed, with daily consumption of 1.7 million litres, 43.3 per cent below its three-million-litre benchmark.
The figures have intensified debate over the consequences of petrol subsidy removal and the need for measures to cushion consumers from high energy costs.
Energy experts and economists have backed calls for targeted government intervention, while cautioning against a return to the previous subsidy regime without adequate safeguards against abuse.
The Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, argued that the current petrol price was becoming increasingly difficult for many Nigerians to afford.
He suggested that part of government revenue from crude oil could be channelled into interventions aimed at moderating petroleum product prices during periods of severe economic pressure.
Energy economist, Prof. Adeola Adenikinju, said a production subsidy would be preferable to a consumption subsidy but warned that vested interests could undermine such a policy.
Adenikinju also urged the Federal Government to strengthen mass transportation as part of efforts to reduce the impact of high fuel prices on households.
He expressed concern that the availability of compressed natural gas buses and infrastructure remained insufficient to provide widespread relief from petrol dependency.
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