Petrol consumption in Nigeria dropped sharply in March 2026, even as supply improved slightly, signalling a clear shift in how consumers are reacting to rising fuel costs.
Fresh data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), as reviewed by Petroleumprice.ng, shows that average daily Premium Motor Spirit (PMS) consumption fell to 47.3 million litres in March, down from 56.9 million litres in February. Representing a 16.9 per cent decline within one month a steep drop that reflects real changes in consumption behaviour across the country.
Price Changes Force Consumers to Cut Back
This drop did not happen by chance. It followed weeks of unstable pricing in the deregulated market. Within the period, Petrol prices were adjusted seven times, with five increases and two reductions, creating uncertainty for both households and businesses. At the same time, pump prices stayed above ₦1,200 per litre in many areas. As a result, people began to cut back.
Transport operators reduced trips. Small businesses limited generator use. Households became more careful with how they consumed fuel. In simple terms, Nigerians adjusted quickly because they had no choice.
Supply Improves as Imports Fill the Gap
While demand dropped, supply moved up but only marginally. Total petrol supply increased from 39.5 ML/d in February to 40.1 ML/d in March, a 1.5 per cent rise. This improvement helped ease pressure in some locations, especially where queues had previously built up. However, the increase was not strong enough to completely stabilise the market.
At the same time, the structure of supply changed, domestic supply fell from 36.5 ML/d to 34.2 ML/d, whilst Imports jumped from 3.0 ML/d to 5.9 ML/d. This sharp increase in imports shows clearly that marketers had to rely more on foreign supply to keep petrol flowing across the country. In effect, imports filled the gap left by weaker domestic output.
Even though supply remained below earlier demand levels, the sharp drop in consumption changed the situation. With Nigerians using less petrol, the pressure on available supply reduced, making it easier for products to circulate.
Stock Levels Drop as Market Adjusts
Stock sufficiency dropped from 30.7 days in February to 21.2 days in March, a 30.9 per cent decline. This means the buffer became thinner. However, it also shows that products were moving faster through the system rather than sitting in storage.
The March figures tell a simple but important story. Nigerians are no longer consuming petrol the same way they used to. People are reacting directly to price changes, consumption is dropping because fuel is expensive, and imports are now playing a bigger role in keeping supply stable while local supply remains inconsistent.
Most importantly, this is no longer a supply problem alone it is now a price driven market. As long as prices remain high and unstable, consumption will likely stay under pressure, and going forward, how much petrol Nigerians use will depend less on availability and more on what they can afford.