Nigerians spent a staggering ₦11.3 trillion on Premium Motor Spirit (petrol) between January and July 2026 to power their vehicles and generators, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Following the removal of petrol subsidies by President Bola Tinubu, fuel prices climbed sharply from ₦175 to a peak of ₦1,310 per litre, keeping monthly consumer spending consistently above ₦1 trillion despite a noticeable decline in total demand.
Expenditure hovered around ₦1.55 trillion in January on 1.87 billion litres when prices averaged ₦830 per litre, dropping to ₦1.32 trillion in February on 1.59 billion litres. However, as prices jumped to ₦1,100 per litre in March, monthly spending rose to ₦1.61 trillion for 1.47 billion litres. By April, petrol reached ₦1,250 per litre, driving spending up to ₦1.92 trillion on 1.53 billion litres, and May recorded ₦1.87 trillion on 1.44 billion litres at a peak average of ₦1,300 per litre. Prices moderated slightly to ₦1,200 per litre in June and July, but July saw average daily consumption drop to a record low of 35.7 million litres per day 28.6% below the nation's 50-million-litre daily benchmark yet total monthly expenditure still reached ₦1.33 trillion.
This sharp decline in petrol demand mirrored a broader divergence in energy consumption across the country. While aviation fuel also suffered a steep deficit, averaging 1.7 million litres daily against its 3-million-litre benchmark, demand for other fuels expanded. Diesel consumption grew to 14.7 million litres per day, exceeding its daily benchmark by 5%, while Liquefied Petroleum Gas (cooking gas) rose by 12.8% to reach 4.4 kilotonnes per day.
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The mounting financial burden on households and businesses has reignited intense policy debate among energy economists and experts following calls from former Vice President Atiku Abubakar to review the government's subsidy stance. Olatide Jeremiah, CEO of Petroleumprice.ng, argued that a pump price of ₦1,300 is unsustainable in a nation where 80% of citizens live in poverty, suggesting the government channels crude oil revenues into temporary price-capping interventions similar to international relief models. Concurrently, energy economist Prof. Adeola Adenikinju emphasized that while production subsidies are preferable to consumption subsidies, the government must prioritize building robust mass transit systems, criticizing current Compressed Natural Gas (CNG) initiatives as far too limited to cushion the economic hardship facing everyday Nigerians.
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