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Petrol Demand Slumps as Prices Cross ₦1,300

byUchechukwu Ejezie
April 4, 2026
in Economy, Energy
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Oil marketers have reported a sharp decline in petrol sales across Nigeria, with many filling stations witnessing a significant drop in daily volumes due to rising fuel prices.

Industry operators say stations that previously sold up to 10,000 litres of petrol per day now struggle to sell between 1,000 and as low as 300 litres, reflecting weakened consumer demand.

The downturn comes amid sustained volatility in the downstream petroleum sector, driven by rising global crude oil prices linked to geopolitical tensions involving the United States, Iran, and Israel. Recent price increases have pushed petrol from an average of ₦839 per litre to over ₦1,350, while diesel now exceeds ₦1,750 per litre, significantly impacting purchasing power.

Speaking on the development, Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said consumer behaviour has shifted dramatically. “Most stations that used to sell 10,000 litres daily are now selling between 1,000 and 2,000 litres, and in some cases as low as 300 litres. People now buy just four or five litres,” he said.

Ukadike added that many motorists are abandoning fuel-intensive vehicles for more economical options, including smaller cars, tricycles, and even electric alternatives.

Another marketer, Isa Muhammad, noted that operators are grappling with tighter margins, rising working capital requirements, and declining turnover. “It has led to higher costs and softer demand. Margins are shrinking due to price volatility and reduced consumer purchasing power,” he said.

Industry players also pointed to structural challenges, including limited domestic refining capacity, as a factor exacerbating the impact of global oil price increases. They argued that functional state-owned refineries could help stabilise local prices by providing a benchmark in the market. However, under the current deregulated regime, global crude prices and exchange rate movements largely determine pump prices.

Ukadike noted that the Nigerian National Petroleum Company (NNPC Ltd) no longer plays a dominant role in price-setting, reducing the government’s ability to influence market trends.

In response to declining petrol demand, marketers say they are adopting survival strategies, including cost optimisation, supply chain improvements, and diversification into alternative energy products. “We are improving operational efficiency and exploring new energy services to cushion the impact,” Muhammad said.

Despite the challenges, operators noted that product availability remains stable, warning that the situation could have been worse if supply shortages were added to affordability concerns.

The surge in fuel prices is part of a broader rise in energy costs across Nigeria. Aviation fuel prices have also climbed above ₦2,000 per litre, increasing pressure on airlines and likely leading to higher airfares.

Analysts say the trend underscores how global oil market shocks are reshaping consumer behaviour and business operations in Nigeria, with affordability emerging as a key concern for households and businesses.

Tags: Consumer behaviourEnergy CrisisFuel demandGlobal Oil PricesInflationIPMANNigeria EnergyNNPCOil MarketersPetrol Price
Uchechukwu Ejezie

Uchechukwu Ejezie

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