Petrol Consumption Drops By 25% Despite Decline In Pump Prices

BY NSE ANTHONY-UKO, Abuja AND CHIKA IZUORA, Lagos

Nigeria’s petrol consumption fell sharply in July 2026, despite a decline in pump prices across the country, according to the latest fact sheet released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Petroleum marketers attributed the decline to the rising cost of refined products, reduced purchasing power and seasonal factors, particularly heavy rainfall, which they said discouraged motorists from travelling.

The report showed that daily petrol consumption, measured by volumes trucked out into the domestic market, fell by 25 per cent, from 47.4 million litres in June to 35.7 million litres in July.

It was the steepest month-on-month decline recorded in the year-long trend tracked by the regulator and the lowest consumption level recorded since at least July 2025.

July’s consumption was also significantly below the 2026 daily demand benchmark of 50 million litres. According to the data, petrol consumption has remained below the benchmark in five of the past seven months.

The decline in demand came despite falling pump prices in all eight cities monitored by the NMDPRA between June and July, with average prices dropping by about five per cent.

Enugu recorded the steepest decline, with the average pump price falling from N1,355.50 to N1,256 per litre, representing a 7.3 per cent reduction.

Maiduguri recorded the smallest decline, from N1,393 to N1,345 per litre, or 3.4 per cent.

Lagos remained the cheapest city for petrol in both months, with the average price falling from N1,284.50 to N1,204 per litre.

The price reductions occurred despite an increase in international gasoline prices, which rose from $988.24 per metric tonne in June to $1,094.67 in July.

The naira also weakened slightly against the dollar under the NFEM FIX rate used in the report, moving from N1,366.82 to N1,373.25 per dollar.

Dated Brent crude, however, declined marginally from $85.47 to $83.41 per barrel during the period.

The NMDPRA data further showed that petrol supply tightened in July, with domestic refinery receipts falling by 21 per cent month-on-month, from 32.5 million litres per day in June to 25.8 million litres per day.

Imports rose by nine per cent during the month to partly offset the decline in domestic refinery supplies.

All three NNPCL-owned refineries – Port Harcourt, Warri and Kaduna – remained non-operational throughout July.

Despite the decline in both supply and consumption, national petrol stock sufficiency improved to 22.4 days in July, up from 19.7 days in June.

The figure, however, remained below the NMDPRA’s 30-day minimum threshold.

Reacting to the report, the national president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, attributed the decline in consumption largely to the high cost of refined petroleum products.

Gillis-Harry, however, noted that price fluctuations had become a regular feature of the downstream petroleum market since the deregulation of the sector, adding that market forces continued to influence prices.

He said the NMDPRA’s figures were largely accurate, noting that July is typically characterised by heavy rainfall, which affects travel patterns.

The PETROAN president also cited declining purchasing power among motorists, saying the development had affected the returns of petroleum marketers as sales volumes continued to fall.

Similarly, spokesman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said the increase in the cost of refined petroleum products was limiting sales volumes.

Ukadike also agreed that seasonal factors contributed to the decline, noting that motorists generally reduced travelling during periods of heavy rainfall, particularly in July.

He added that the school holiday period also contributed to reduced commuting, further depressing petrol demand and sales volumes.