Rising fuel prices slash petrol, diesel, cooking gas demand

Nigerian consumers are drastically reducing their consumption of petrol, diesel, and cooking gas as soaring pump prices take a heavy toll on household budgets and business operations. The first half of 2026 has seen a clear correlation between escalating energy costs and weakening demand for these essential petroleum products, according to an analysis of the Downstream Industry Analysis Report by the Major Energy Marketers Association of Nigeria (MEMAN).

The average retail price of Premium Motor Spirit (petrol) saw a steady climb, starting at N1,035 per liter in January and peaking at N1,596 in May, before a slight dip to N1,300 in June. This price surge directly impacted consumption, which fell from approximately 60-61 million liters daily in January to around 46-47 million liters in May. Similarly, Automotive Gas Oil (diesel) prices rose from N1,362 per liter in January to a high of N3,277 in May, causing average daily consumption to drop from about 19.5 million liters to around 15.5-16 million liters in March and subsequent months.

Liquefied Petroleum Gas (LPG) also experienced reduced demand as prices increased from N1,086 per kilogram in January to N1,800 in May, before easing to N1,661 in June. Daily consumption of LPG fell from about 4.9-5.0 kilotonnes in January to roughly 4.2 kilotonnes by June. MEMAN attributes these price hikes primarily to rising global crude oil prices, exacerbated by geopolitical tensions in the Middle East and disruptions in shipping routes like the Strait of Hormuz. While crude prices saw some moderation in June, they remained elevated compared to the start of the year. The association emphasized that these figures highlight Nigerian consumers' increasing price sensitivity, where higher pump prices inevitably lead to lower consumption.