A sharp rise in fuel pump prices across Nigeria forced consumers to significantly cut back on their usage of petrol, diesel, and cooking gas during the first half of 2026. Higher energy costs hit household budgets hard while simultaneously driving up transportation and production expenses nationwide. According to the H1 2026 Downstream Industry Analysis Report by the Major Energy Marketers Association of Nigeria (MEMAN), there was a direct link between rising price tags and shrinking product demand, illustrating just how price-sensitive Nigerian consumers have become.
The data reveals a clear picture of this squeeze across all three major petroleum products. Premium Motor Spirit (petrol) started the year at ₦1,035 per litre in January and steadily climbed to peak at ₦1,596 per litre by May, before easing to ₦1,300 per litre in June. Over that same period, daily consumption dropped from between 60 and 61 million litres in January to a low of 46 to 47 million litres in May, before picking up slightly to 48 million litres daily in June as prices eased. A similar pattern unfolded for Automotive Gas Oil (diesel), which saw prices jump dramatically from ₦1,362 per litre in January to ₦3,277 per litre in May, before moderating to ₦2,900 per litre in June. In response, daily diesel consumption contracted from 19.5 million litres in January down to around 16 million litres in May and June. Liquefied Petroleum Gas (cooking gas) followed suit, climbing from ₦1,086 per kilogram in January to ₦1,800 per kilogram in May, which pushed daily consumption down from nearly 5 kilotonnes to 4.2 kilotonnes by June.
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MEMAN attributed these escalating pump prices to broader global pressures, including geopolitical tensions in the Middle East and shipping disruptions through the Strait of Hormuz that drove up crude oil costs. Looking ahead to the second half of 2026, the association emphasized that while domestic refining capacity led by the Dangote Refinery has greatly reduced Nigeria’s reliance on foreign fuel, imports should not be eliminated entirely. Marketers cautioned against relying on a single refinery, advocating instead for complementary imports and the establishment of a National Strategic Stock to protect energy security, prevent supply shortages, maintain market competition, and shield the country from future global or operational disruptions.
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