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Nigeria posted the highest increase in petrol prices across Africa during the first half of 2026, with pump prices rising by 39.5 per cent as the Middle East conflict disrupted global crude oil supplies and intensified pressure on the country\'s deregulated downstream petroleum sector.
The revelation was contained in the Nigeria Half-Year Downstream Industry Report (January–June 2026) released on Tuesday by the Major Energies Marketers Association of Nigeria (MEMAN), which linked the price hike to the conflict involving Israel, Iran and the United States that erupted on February 28.
According to the report, escalating tensions in the Middle East pushed global crude oil prices above 100 dollars per barrel while the temporary disruption of shipping through the Strait of Hormuz forced oil tankers to reroute around the Cape of Good Hope, extending voyage times from about 18 days to nearly 40 days and significantly increasing freight and insurance costs.
MEMAN stated that Nigeria\'s deregulated fuel market transmitted the international price shock directly to consumers, making the country the worst affected in Africa. It noted that Nigeria\'s 39.5 per cent increase in petrol prices was far higher than the 14.3 per cent recorded in Egypt during the same period.
Despite the sharp rise in fuel prices, the association said the period marked a major shift in Nigeria\'s downstream industry as domestic refining significantly reduced dependence on imported Premium Motor Spirit (PMS). It attributed the progress largely to the operational expansion of the Dangote Petroleum Refinery.
The report showed that the share of locally refined petrol increased from 38.9 per cent in 2025 to 81.7 per cent during the review period. It added that local refineries supplied an average of 64 per cent of diesel demand, while domestic gas processing plants accounted for 90.5 per cent of cooking gas consumption.
However, MEMAN warned that local refining capacity remained insufficient to meet national demand during peak periods between February and April, forcing regulators to approve fuel imports to prevent supply shortages. It also disclosed that national petrol stock sufficiency fell from 33 days in January to just 16 days in May before recovering to about 20 days in June, still below the statutory 30-day safety benchmark.
The association stressed the need for government-backed strategic petroleum reserves and dedicated crude oil feedstock reserves to shield Nigeria from future global supply disruptions. It further revealed that persistently high fuel prices reduced consumer demand, with average daily petrol consumption declining by 22.3 per cent and diesel consumption dropping by 17.5 per cent.
MEMAN maintained that although increased domestic refining has strengthened Nigeria\'s energy security, sustained regulatory oversight, fair competition and continued investment in refining capacity remain critical to protecting consumers and ensuring the long-term success of the country\'s downstream petroleum reforms.
