Petrol consumption hits record low amid rising prices

Nigerians consumed the lowest amount of petrol in August amidst skyrocketing prices of the product, Daily Trust can report.

Analysis of the factsheets released by the Nigerian Midstream showed that the average consumption of 41.6 million litres of petrol consumed in August was 31 percent reduction from the 60.2 million litres consumed in January.

While analysis showed consumption wavered from month to month as there is no consistency in the drop, Daily Trust reports that the rising price of petrol has made many Nigerians to jettison their vehicles or stop the use of petrol-fueled generators.

Even though the price increase was triggered by the US-Iran war which disrupted fuel supply, most Nigerians have accused the federal government of exposing Nigerians to bear the brunt of the war while other countries have introduced some sort of subsidy to protect their citizens.

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A breakdown of the eight months average consumption showed that consumption was highest in January with a daily average of 60.2 million litres consumed. This could be due to the yuletide festivities.

Consumption dropped to a daily average of 56.9 million in February and it went down to 47.3 million in March.

It however, increased to 51.1 million in April and further dropped to 46.3 million in May. Consumption went back up to 47.4 million in June and it maintained the increase to 48.3 million in July before dropping to 41.6 million in August.

PMS supply

Ironically, the month of August saw one of the highest daily average PMS supplies into the local market with 50.5 million litres supplied daily.

A breakdown showed that 64.9 million litres was supplied daily in January before crashing to 32.5 million in February. It increased to 40.1 million in March and 44.4 million in April and 47.4 in May.

It increased significantly to 50.6 million in June but dropped to 45.5 million in July before rising to 50.5 million in August.

The report also showed that Dangote supplied 40.1 million litres per day of PMS in January while NNPC and other independent marketers imported 24.8 million. In January, Dangote supply increased to 29.4 million while import dropped to 3m.

In March, Dangote’s supply increased to 34.2 million but import increased to 5.9 million. For April, Dangote’s supply was 40.7 million litres while importers supplied 3.7 million. May also saw Dangote’s increase to 41.5 million, importers also increased their supply to 5.9 million.

But Dangote reduced its supply to 32.5 in June while importers increased theirs to 18.1 million and the same pattern was followed in July with Dangote reducing supply to 25.8 million while importers increased supply to 19.7 million.

August saw Dangote’s supply increased to 35 million while importers reduced supply to 14.6 million.

NNPCL’s discount

While the government had introduced a N66 per litre discount for Nigerians in October to ease the rising price of the product, most Nigerians have said the discount is inaccessible to everyone and the amount is too little to have an impact on the prices of goods and services.

Daily Trust had reported that commercial transport operators across the country have expressed disappointment over the petrol discount at the Nigerian National Petroleum Company Limited (NNPCL) retail outlets, saying the intervention has yet to provide meaningful relief from high operating costs.

The transporters said the discount was too small to significantly reduce their operating costs and difficult to access because of the procedures involved.

Some also complained that spending time queuing for discounted petrol could reduce their working hours and the number of trips they make daily.

Daily Trust reports that on October 8, 2026, the federal government announced a 31-day discount on petrol sold at NNPCL retail outlets, with priority given to public transport operators nationwide.

The announcement generated debate over whether the intervention amounted to a return of petrol subsidy, which President Bola Ahmed Tinubu ended on May 29, 2023.

The federal government, however, maintained that the discount is not a subsidy.

“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days in the first instance, with priority for public transporters nationwide. It’s not a subsidy; the government is saying we sell to you at a cost,” the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said while announcing the initiative.

However, nearly two weeks after the announcement, commercial transport operators who spoke to Daily Trust said they had yet to feel any significant impact from the initiative.