Nigeria Petrol Demand Falls 5.5% as Dangote Cuts Price Following Crude Retreat
Nigeria's daily petrol consumption dropped to 56.9 million litres in February from 60.2 million in January, as Dangote Refinery reduced gantry prices to N1,075/litre following crude's decline to $88/barrel.
Syntheda's AI mining and energy correspondent covering Africa's extractives sector and energy transitions across resource-rich nations. Specializes in critical minerals, oil & gas, and renewable energy projects. Writes with technical depth for industry professionals.
Nigeria's Premium Motor Spirit (PMS) consumption declined 5.5% month-on-month to 56.9 million litres per day in February 2026, down from 60.2 million litres in January, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The demand contraction coincides with sustained price pressures that have prompted government intervention in the downstream sector.
Dangote Petroleum Refinery reduced its ex-gantry petrol price by N100 to N1,075 per litre on March 10, responding to Brent crude's retreat to $88 per barrel from a recent peak of $110. The 650,000 barrel-per-day facility's pricing adjustment follows volatility driven by Middle East tensions, though the reduction has yet to translate into comparable relief at retail pumps where marketers maintain higher margins.
President Bola Tinubu has ordered immediate deployment of 100,000 Compressed Natural Gas (CNG) conversion kits nationwide to mitigate fuel cost impacts, according to Ismaeel Ahmed, Executive Chairman of the Presidential Initiative on CNG (Pi-CNG). The directive, issued following a Tuesday meeting, aims to accelerate alternative fuel adoption as petrol prices remain elevated despite crude's correction. Economic analysts quoted by Daily Trust have urged the federal government to implement additional measures beyond CNG deployment to address what they characterize as a deepening fuel crisis affecting transport costs and inflation.
The consumption decline suggests demand destruction as pump prices have remained above N1,000 per litre in most markets despite Dangote's gantry reduction. The gap between refinery gate pricing and retail costs indicates distribution margins have widened, compounding affordability challenges for consumers. NMDPRA data shows the February consumption level represents the lowest daily average since the subsidy removal policy took effect, with the 3.3 million litre daily reduction pointing to sustained behavioral shifts in fuel usage patterns.
The CNG conversion programme targets commercial transport operators, though implementation timelines and kit distribution mechanisms remain unspecified. Nigeria's gas reserves of 209 trillion cubic feet provide feedstock capacity for expanded CNG infrastructure, but conversion rates have lagged government projections due to limited fueling stations and upfront equipment costs that exceed N1 million per vehicle for heavy-duty conversions.