Nigeria’s daily petrol consumption reduced by 17m litres since subsidy removal- NMDPRA

Nigeria’s daily petrol consumption reduced by 17m litres since subsidy removal- NMDPRA

 The Nigerian Midstream and Downstream Petroleum Regulatory
Authority (NMDPRA) says Nigeria’s average daily petrol consumption decreased to
49.8 million litres from 66.9 million litres as of May 2023.

 

Speaking during a State House briefing on Tuesday, Farouk
Ahmed, NMDPRA’s chief executive officer (CEO), said the daily petrol
consumption has dropped by 17.1 million litres since subsidy removal.

 

As of 2015, he said the country’s daily sufficiency was
48.71 million litres.

 

Ahmed said the figure was 48.9 million litres in 2016, 50.2
million litres in 2017, 53.5 million litres in 2018, and 56.4 million litres in
2019.

 

In 2020, Ahmed said the country’s daily petrol consumption
fell to 55.6 million litres before increasing again to 61.9 million litres in
2021 and 66.7 million litres in 2022.

 

Between January 2023 and May 2023, when the petrol subsidy
was removed, the NMDPRA CEO said the country’s daily petrol consumption
averaged 66.9 million, which he described as “very high”.

 

“So, first of all, the price (of petrol) was low, the
borders were porous, the price in the neighbouring countries was high because
it was easy to cross, and even locally, the naira value was low because naira
was subsidised against the dollar,” Ahmed said.

 

From June 1, 2023, to December 2023, Ahmed said daily petrol
consumption dropped to 47.5 million litres “because the subsidy was gone and so
the market curtailed itself,” adding that there was also exchange rate
harmonisation.

 

From January 2024 to August 2024, he said petrol consumption
went up to 51.8 million litres per day.

 

Subsequently, from September 2024 to date, Ahmed said the
average petrol consumption dropped to 49.8 million litres per day.

 

Speaking further, Ahmed said that from June 2023 to April 13
2025, the country recorded its lowest daily petrol consumption of 41.6 million
litres in September 2023 and its highest demand of 59.7 million litres in May
2024.

 

The NMDPRA CEO attributed the decline in petrol consumption
to less driving due to the increased cost of the product, adding that since
petrol subsidy payments were halted, “the nation now has excess funds for other
sectors”.

Source: Nigeria’s daily petrol consumption reduced by 17m litres since subsidy removal- NMDPRA

 - NigerianEye
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