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Nigeria’s Petrol Consumption Drops to 46.38 Million Litres Daily After Subsidy Removal

July 18, 2023

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reported that the country’s daily petrol consumption has decreased to 46.38 million litres following the removal of subsidies by the federal government. NMDPRA CEO Ahmed Farouk revealed this information during a stakeholders’ meeting with oil and gas downstream operators in Lagos.

Farouk stated that the figure represents a significant reduction of 35% compared to the previous daily consumption of 65 million litres before the subsidy removal. Since the announcement of subsidy removal on May 29, the average daily truck-out for petrol consumption has been at 46.38 million litres.

“The current daily consumption has drastically reduced as against 65 million litres, which had been the daily consumption before subsidy removal,” Farouk explained. He further provided a breakdown of the monthly petrol consumption figures from January to July, highlighting the decline in consumption over the months.

The purpose of the stakeholders’ meeting was to review the downstream sector after the subsidy removal and express gratitude to marketers who have taken the initiative to import petrol. Farouk disclosed that more than 56 companies applied for import licenses, but only 10 committed to importing petrol. Among them, Emadeb Energy, A.Y Shafa, and Prudent Energy have already imported petrol into the country, while 11 Plc has expressed interest in importing petrol in August and September.

Farouk emphasized that the era of subsidy payments is over and encouraged all interested marketers to apply for import licenses. The market has been liberalized, allowing for competition and multiple players in the industry.

Farouk also reassured consumers that the NMDPRA is working with the Federal Competition and Consumer Protection Commission (FCCPC) to prevent marketers from taking undue advantage of customers. Consumer protection and ensuring the importation of quality products are top priorities for the NMDPRA.

(NAN)

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