Nigeria’s Daily Fuel Consumption Falls to 48.03 Million Litres in June 2025 – NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has disclosed that the nation’s daily petrol consumption dropped to 48.03 million litres in June 2025, marking a notable decline compared to previous months. The figure reflects the continued impact of subsidy removal, market reforms, and stricter monitoring of fuel distribution and sales across the country.

According to data released by the Authority, the figure is a reduction from the average of over 60 million litres per day recorded before the removal of fuel subsidies in May 2023. NMDPRA officials attributed the decline to a combination of factors, including improved transparency in the supply chain, reduction in cross-border smuggling, and changes in consumer behaviour in response to higher pump prices.

Chief Executive of NMDPRA, Farouk Ahmed, noted that the agency had intensified its surveillance efforts to ensure that every litre of fuel imported or locally refined is accounted for. He said the deployment of technology-driven tracking systems and collaboration with security agencies had helped curb diversion and smuggling to neighbouring countries where petrol prices remain higher.

Ahmed also explained that the reduction in daily consumption is not solely a result of economic factors but also of improved efficiency in fuel use. “Nigerians are becoming more conscious about fuel management due to cost implications. Many are turning to alternative means of transportation, energy-efficient vehicles, and even renewable energy solutions,” he said.

The data also showed regional variations in petrol consumption, with major urban centres such as Lagos, Abuja, and Port Harcourt accounting for the highest volumes, while border states recorded significant declines, a development the Authority linked to reduced illegal exports.

Industry analysts say the latest figures could help the Federal Government fine-tune its energy policies and plan for more sustainable fuel demand in the future. They argue that while the drop in consumption reflects positive outcomes in combating smuggling and waste, it also points to a potential slowdown in certain sectors of the economy due to reduced mobility and higher operational costs.

Petroleum marketers have also acknowledged the trend, noting that fuel station sales have become more predictable, with fewer artificial shortages or panic buying episodes. However, they warned that the government must maintain stability in supply and pricing to avoid market disruptions, especially as the country transitions to greater reliance on locally refined products from facilities such as the Dangote Refinery and rehabilitated state-owned plants.

The NMDPRA’s figures come at a time when the Federal Government is seeking to balance revenue generation from deregulated petrol pricing with the need to cushion the economic impact on citizens. Proposals for targeted fuel subsidies for public transport operators and other vulnerable sectors are still under review, though officials insist that blanket subsidies will not return.

Economists have pointed out that the lower daily consumption could free up more foreign exchange for other critical imports, as the country spends less on fuel imports. This, they say, could contribute to exchange rate stability in the medium term, particularly if local refining capacity continues to grow and meets most of the domestic demand.

Meanwhile, transport unions and logistics operators have continued to adjust their pricing structures in line with fuel costs, with some adopting bulk purchasing agreements or investing in fuel-efficient fleets to stay competitive. The ongoing shift towards cleaner energy options, such as compressed natural gas (CNG) and solar-powered solutions, is also gaining traction as businesses look for ways to reduce dependence on petrol.

Despite these positive developments, stakeholders caution that maintaining the downward trend in consumption will require sustained enforcement, transparent market practices, and consistent policy direction from the government. They stress that any policy reversal or lapses in monitoring could lead to a resurgence of fuel diversion and artificial scarcity, undermining the progress made so far.

NMDPRA has assured that it will continue publishing monthly consumption data to keep the public informed and to guide policy decisions. The Authority also pledged to work closely with the Nigerian Customs Service, Nigerian National Petroleum Company Limited (NNPCL), and other agencies to ensure the integrity of the supply chain from importation or refining to final retail sales.

As Nigeria moves toward self-sufficiency in petrol production, experts believe that consumption patterns will further evolve, potentially stabilising at a lower daily average than was typical during the subsidy era. This shift, they say, could mark the beginning of a more sustainable and efficient fuel market in the country.