Nigeria’s Fuel Consumption Drops 16% in June 2025 Amid Sector Challenges
Lagos, Nigeria – The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed a significant 16.42% decline in national fuel consumption for June 2025, marking one of the sharpest monthly drops in recent years. The latest figures paint a complex picture of Nigeria’s petroleum sector, with diesel demand bucking the downward trend while gasoline consumption plummeted nearly 50%.
Fuel Evacuation Numbers Tell a Troubling Story
According to official data released Wednesday, total fuel evacuation for June stood at 1.44 billion litres, a staggering 290 million litre decrease from May’s 1.76 billion litres. The NMDPRA’s Director of Public Affairs, George Ene-Ita, clarified that daily consumption averaged 48.03 million litres – correcting earlier reports that had suggested an even lower figure of 38.94 million litres.
“The June figures represent a daily average evacuation of 48,025,604 litres,” Ene-Ita explained, emphasizing that this was calculated by dividing the monthly total by 30 days. “While concerning, we’re working closely with stakeholders to address distribution challenges.”
A Mixed Bag: Diesel Gains While Gasoline Collapses
The breakdown of petroleum products reveals surprising sector dynamics:
Automotive Gas Oil (Diesel)
Diesel supply actually increased by 1.73% to 432.18 million litres, though distribution (truck-out) declined sharply by 23.23%. This paradox suggests potential logistical bottlenecks in getting available product to end users.
Household Kerosene (HHK)
The cooking fuel market saw a 13% decrease in both supply and distribution, falling to 7.79 million litres as alternative energy sources continue gaining traction.
Automotive Gasoline
The most dramatic plunge occurred in gasoline, with supply crashing nearly 48% from 72.36 million litres in May to just 37.66 million litres in June. Distribution followed suit with a 16.54% decline, raising questions about refining capacity and import challenges.
State-by-State Distribution: Lagos Leads Consumption
The NMDPRA report provided granular data on fuel allocations across Nigeria’s states:
- Lagos: 205.66 million litres (14.3% of national total)
- Ogun: 88.69 million litres
- Federal Capital Territory: 77.51 million litres
- Oyo: 72.81 million litres
This geographic breakdown highlights the continued economic dominance of Nigeria’s southwestern region, though analysts note consumption patterns may reflect distribution infrastructure as much as actual demand.
Crude Production Bright Spot Amid Downstream Woes
In a contrasting development, Nigeria’s upstream sector showed resilience. OPEC’s latest Monthly Oil Market Report revealed the country exceeded production quotas for the second consecutive month, averaging 1.507 million barrels per day (bpd) in July 2025.
This production success story raises pointed questions about why increased crude output isn’t translating to better downstream performance. Industry experts suggest refining bottlenecks, distribution inefficiencies, and possible inventory management strategies may be contributing factors.
What This Means for Nigeria’s Energy Future
The June fuel statistics arrive at a critical juncture for Africa’s largest oil producer. While the NMDPRA has pledged to strengthen distribution networks, the numbers suggest deeper structural issues may be at play:
- Potential demand destruction from high fuel prices
- Growing adoption of alternative energy sources
- Persistent logistical challenges in product distribution
- Possible impact of economic policies on consumption patterns
As Nigeria navigates these complex energy dynamics, all eyes will be on whether July figures show a continuation of these trends or signs of market correction. One thing is certain – the gap between upstream production success and downstream challenges presents both a policy puzzle and an opportunity for sector reform.
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