Nigerians spent a staggering ₦1.3 trillion on Premium Motor Spirit (PMS), popularly called petrol, in June 2025 alone, as fuel consumption climbed to 1.44 billion litres nationwide, according to new figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The data, released in the Authority’s PMS truck-out report, highlights the country’s heavy reliance on petrol for both transportation and power generation amid a lingering electricity supply crisis.
Following the removal of fuel subsidies in 2023, Nigerians have continued to grapple with soaring pump prices that now average around ₦900 per litre.
According to the breakdown, Lagos State emerged as the highest consumer, gulping 205.7 million litres, valued at ₦185.1bn.
Neighboring Ogun State followed with 88.7 million litres (₦79.8bn), while the Federal Capital Territory, Abuja accounted for 77.5 million litres worth ₦69.8bn.
Oyo State also featured prominently with 72.8 million litres valued at ₦65.5bn.
By contrast, Jigawa State recorded the least allocation nationwide with just 9.4 million litres worth ₦8.5bn.
Other low-consuming states included Ebonyi (₦9.5bn), Yobe (₦10.5bn), and Bayelsa (₦10.7bn).
At the zonal level, the South-West region dominated, consuming 452.9 million litres valued at ₦407.7bn.
The North-Central zone came second with 247.4 million litres (₦222.4bn), followed by the North-West at 230 million litres (₦207bn).
The South-South consumed 224.9 million litres (₦202.9bn), while the North-East recorded 152.8 million litres (₦137.5bn).
The South-East had the lowest figure with 132.7 million litres valued at ₦119.6bn.
Analysts say the figures reflect Nigeria’s overdependence on petrol, not just for transportation but also for electricity generation in homes, offices, and small businesses.
With the national grid plagued by persistent blackouts, millions of Nigerians rely on generators to power daily activities.
This dependence has worsened since President Bola Tinubu’s subsidy removal policy of May 2023, which pushed fuel prices from about ₦200 per litre to highs of ₦1,200 before moderating in 2024.
The Dangote Petroleum Refinery, which began large-scale petrol production in 2024, is currently the sole functional refinery in Nigeria.
It has significantly altered the market, reducing reliance on imports by the Nigerian National Petroleum Company Limited (NNPC).
Billionaire industrialist Aliko Dangote recently stated that Nigerians are paying about 55 per cent less than their West African counterparts.
He revealed that petrol from his refinery sells at between ₦815 and ₦820 per litre, compared to an average of $1 (₦1,600) per litre in neighbouring countries.
“Many Nigerians don’t realise they are currently paying almost half of what others in the region spend on petrol.
Local refining has helped reduce prices compared to import-dependent nations,” Dangote noted.
Despite these relative gains, many Nigerians still consider current prices unsustainable.
Consumers argue that pump prices should fall to between ₦200 and ₦500 per litre to ease inflation and reduce the cost of living.
A Lagos resident, Favour Samson, lamented that high petrol prices continue to fuel inflation.
“Selling petrol above ₦850 is still too much. If prices drop to ₦200–₦500, you’ll see the impact across all sectors of the economy,” she said.
Meanwhile, fuel marketers have complained of financial strain, saying that repeated price cuts by the Dangote refinery, while beneficial to consumers, have eroded their profit margins.
The ₦1.3tn spent on petrol in June alone represents a massive outflow of household and business income into energy costs, with ripple effects on transport fares, food prices, manufacturing costs, and overall inflation.
Economists warn that Nigeria’s dependence on PMS for power and mobility makes the economy highly vulnerable to fuel price shocks.
They argue that diversifying energy sources and investing in renewable alternatives could help reduce the strain.
Industry watchers also stress the importance of improving public transportation, expanding electricity generation, and boosting local refining capacity beyond the Dangote refinery to stabilise prices and reduce fiscal pressure.
With petrol consumption expected to remain high, policymakers face the challenge of balancing energy affordability, economic stability, and investment in alternative power sources.
For now, Nigerians continue to pay a steep price, literally, to keep their vehicles moving and their homes lit.
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