Nigeria: Subsidy Removal – Nigeria’s Daily Petrol Consumption Figure Reduces

NMDPRA says marketers can fix their prices, because it is a free market where there is competition.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Monday said the country’s daily consumption of petrol has drastically reduced following the removal of subsidy by the Federal Government.

The daily consumption figure now stands at 46.38 million litres, down from the 65 million litres per day before the cut in subsidy.

The Chief Executive, NMDPRA, Ahmed Farouk, disclosed this during a stakeholders meeting with oil and gas downstream operators in Lagos.

He said that the figure represented 35 per cent reduction when compared with the 65 million litres per day, prior to subsidy removal.

According to him, an average truck out on daily basis for petrol consumption, after subsidy removal on May 29, reduced to 46.38 millions litres.

“The current daily petrol consumption has drastically reduced as against 65 million litres which had been the daily consumption before subsidy removal.

“In January, it was 62 million per litre; February, 62 million per litre; March, 71.4 million per litre; April, 67.7 million per litre; May 66.6 million per litre; June, 49. 5 million per litre and July, 46.3 million per litres,” he said.

The NMDPRA boss said that the essence of the meeting was to review the downstream sector after the subsidy removal and also to thank marketers who had taken the offer to import petrol.

On petrol importation, Mr Farouk said over 56 companies applied for import licenses to bring in petrol, while only 10 made commitment to import.

He said that currently three marketers, namely Emadeb Energy, A.Y Shafa and Prudent Energy had imported petrol into the country.

He added that others, like 11 Plc, are also indicating interest to import petrol in August and September, respectively.

“The era of subsidy payment is gone, we encourage all marketers who are interested in importing petrol to apply for license.

“The meeting is to encourage marketers to import, so that there will be availability of petrol at every nooks and crannies of the nation.

“The marketers have the choice to fix their price, because it is a free market where there will be competition.

“It is no longer Nigeria National Petroleum Corporation Limited (NNPCL) dominating the market, there will be other players to compete with NNPCL.