Fuel price surge cuts petrol, diesel, cooking gas demand in H1 2026, MEMAN report shows

Nigerian households and businesses sharply cut their consumption of petrol, diesel and cooking gas in the first half of 2026 as pump prices rose to record highs, a new industry report has shown.

The H1 2026 Downstream Industry Analysis Report, published by the Major Energy Marketers Association of Nigeria (MEMAN), tracked price and demand movements for Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Liquefied Petroleum Gas (LPG) between January and June.

Petrol demand falls as prices climb

Petrol prices moved from N1,035 per litre in January to N1,051 in February, then surged to N1,289 in March. The climb continued, reaching N1,533 in April and peaking at N1,596 in May before moderating to N1,300 in June.

Average daily petrol demand stood at roughly 60 to 61 million litres in January, fell to about 58 million litres in February, and dropped sharply to around 48 million litres in March. Demand recovered slightly to about 51 million litres in April before falling again to between 46 and 47 million litres in May. When prices eased in June, consumption edged back up to around 48 million litres.

MEMAN described the pattern as evidence of "growing price sensitivity among consumers."

Diesel and cooking gas also hit

Diesel prices told a similar story. The cost of AGO rose from N1,362 per litre in January to N1,420 in February and N1,648 in March, before jumping to N2,475 in April and reaching N3,277 in May. Daily diesel consumption fell from about 20 million litres in February to between 15.5 and 16 million litres in March, stabilising at around 16 million litres through May and June.

Cooking gas was equally affected. Average LPG prices moved from N1,086 per kilogramme in January to N1,800 in May before easing to N1,661 in June. Daily consumption declined from nearly five kilotonnes in January to about 4.2 kilotonnes by June.

Why prices rose, and what MEMAN wants

MEMAN attributed the price increases to elevated global crude oil costs driven by geopolitical tensions in the Middle East and disruptions to shipping through the Strait of Hormuz. The association noted that although crude prices softened in June, they remained above January levels, keeping domestic fuel prices under pressure.

Beyond documenting the trends, MEMAN used the report to call on policymakers to keep the downstream sector competitive by allowing fuel imports to complement local refining output. The association warned against long-term dependence on any single refinery and called for the creation of a National Strategic Stock to help cushion the market against future supply disruptions.

The report said the first half of 2026 clearly showed how quickly Nigerian consumers adjust their energy use when pump prices move, with the effects felt across petrol, diesel and cooking gas alike.

Cooking gas depot prices

Separately, LPG dealers have released fresh depot prices, with wholesale rates ranging between N1,005 and N1,050 per kilogramme. The price movement, quoted on Monday, August 3, extends the decline in loading costs for cooking gas across Nigeria. According to depot price data, Navgas quoted the lowest wholesale price at N1,005 per kilogramme.