NMDPRA – Nigerians spend N1.3tn on petrol in June amid soaring energy costs

Amid rising energy costs and persistent power supply challenges, Nigerians spent approximately N1.3 trillion on Premium Motor Spirit (PMS), commonly known as petrol, in June 2025, according to data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Fuel consumption across the country reached 1.44 billion litres in the month under review — a reflection of Nigeria’s heavy dependence on petrol not only for transportation but also for self-generated electricity, as unreliable grid power continues to plague the nation.

“Petrol consumption in Nigeria is deeply tied to our energy insecurity. In a country where power supply is inconsistent, citizens have little choice but to turn to petrol-powered generators,” said energy analyst Ahmed Dikko.

According to the NMDPRA’s truck-out report, the South-West led the national consumption chart, guzzling 452.9 million litres, valued at N407.7 billion. Lagos State alone accounted for 205.7 million litres (N185.1bn), followed by Ogun with 88.7 million litres (N79.8bn), and Oyo, 72.8 million litres (N65.5bn).

The Federal Capital Territory (FCT), Abuja, ranked third in consumption with 77.5 million litres, worth N69.8 billion.

At the lower end, Jigawa, Ebonyi, Yobe, and Bayelsa recorded the least volumes, each consuming under 12 million litres, with respective spending between N8.5bn and N10.7bn.

Regionally, the North-Central followed the South-West, consuming 247.4 million litres worth N222.4bn, while the North-West consumed 230 million litres (N207bn). The South-East recorded the lowest regional consumption with 132.7 million litres, amounting to N119.6bn.

“The numbers clearly mirror population density, economic activity, and vehicle ownership,” said development economist Bisi Ogundare. “Urban centres with higher industrial activity consume more fuel.”

Fuel prices have remained volatile since the removal of petrol subsidies on May 29, 2023, by President Bola Ahmed Tinubu. Prices jumped from around N200/litre to as high as N1,200/litre at their peak.

However, the entrance of the Dangote Refinery into local fuel production has since altered the landscape.

The 650,000-barrel-per-day facility has become Nigeria’s primary fuel supplier, offering prices between N815 and N820 per litre, compared to the regional average of N1,600/litre.

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“Many Nigerians don’t realise they’re currently paying just 55% of what others in the region pay for petrol,” said Aliko Dangote, President of the Dangote Group. “Local refining is making fuel more affordable.”

The Nigerian National Petroleum Company Limited (NNPC), previously the sole importer of petrol, has ceded that role following the end of fuel subsidies and the ramp-up of operations at Dangote’s facility.

While Dangote’s pricing has brought some relief, many Nigerians remain dissatisfied, arguing that prices are still too high given the prevailing economic hardship.

“Selling petrol above N850 per litre is still high and causing inflation to spike,” said Lagos resident Favour Samson.
“The prices should drop to between N200 and N500. That’s the only way to ease the pressure on businesses and families.”

On the other hand, fuel marketers have expressed concern over losses due to the refinery’s lower pricing, which has narrowed their profit margins.

The staggering N1.3 trillion spent on petrol in a single month underscores the economic burden of energy insecurity in Africa’s largest economy.

As fuel remains central to both mobility and electricity, calls for sustainable energy alternatives and revamped national power infrastructure are growing louder.