Fuel consumption in Nigeria drops by 12.96m after fuel subsidy removal

Petrol consumption in Nigeria dropped in July by 19.95 per cent month-on-month, following the removal of fuel subsidy by President Bola Tinubu.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) report for the month of July 2023, Nigerians consumed 52 million litres daily.

This is contrasted with the 64.96 million litres per day recorded in June of the same year, indicating a decline of 12.96 million within one month.

The 19.95 per cent decline occurred after President Tinubu removed fuel subsidy, which he said is not benefiting the poor in Nigeria compared to neighbouring countries.

What you need to know

Note that fuel subsidy has been cited as one of the factors encouraging smugglers to smuggle petrol out of Nigeria to sell at unapproved prices in other African countries, while the revenue from the smuggled fuel can’t be accounted for by the NNPC.

READ ALSO:‘Pains caused by fuel subsidy removal are for a better tomorrow,’ Tinubu assures Nigerians

With the government putting a stop to subsidising fuel, the profit from smuggled fuel is expected to drop, thereby, discouraging smuggling of the product out of Nigeria.

DAPPMAN, NNPC take largest share of petrol stock

It was disclosed that at the end of July, land-based stock of petrol accounted for 1.120 billion litres, Marine stock contributed 521 million litres and dead stock was 83.637 million litres.

The total petrol stock stood at 1.725 billion litres, compared to 1.968 billion litres recorded on July 1, 2023, when the land-based stock was 1.059 billion litres, Marine stock stood at 826.447 million litres and the dead stock was put at 83.095 million litres.

At the beginning of last month, 293.380 million litres were attributed to the Nigerian National Petroleum Corporation Limited (NNPCL).

Over 91.202 million litres went to the Members of the Major Oil Marketers Association of Nigeria (MOMAN), while the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) took possession of 753.825 million litres.

However, at the end of July, the share of petrol showed that DAPPMAN took the largest share of 765.16 million litres, NNPCL received 377.68 million litres and MOMAN had 60.973 million litres.

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