Subsidy Removal: Nigeria’s petrol daily consumption decreases by 35% — NMDPRA

The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Ahmed Farouk, has revealed that the country’s daily petrol consumption figure has reached 46.34 million litres.

Farouk, while speaking during a stakeholders meeting in Lagos on Monday stated that the significant reduction of 35% is attributed to the subsidy removal by the Federal Government.

According to him, the average daily truck out for petrol consumption dropped to 46.34 million litres after the announcement of the subsidy removal on May 29.

He highlighted the decreasing trend, stating that in January and February, the daily consumption was 62 million litres, while in March, it rose to 71.4 million litres. However, from April to July, there was a consistent decline, reaching 46.3 million litres in July.

The purpose of the stakeholder’s meeting was to review the downstream sector after the subsidy removal and express gratitude to the marketers who have taken the initiative to import petrol.

Farouk disclosed that over 56 companies applied for import licenses, with 10 demonstrating a commitment to import.

Notably, Emadeb Energy, A.Y Shafa, and Prudent Energy are among the companies that have already imported petrol, while 11 Plc has indicated interest in importing in August and September.

Emphasising the shift towards a liberalised market, Farouk emphasised that the era of subsidy payment is over, encouraging interested marketers to apply for licenses.

He stressed the importance of competition and the need for a level playing field, stating that the market should not be dominated by a single player like the Nigeria National Petroleum Corporation Limited (NNPCL).

The NMDPRA is working closely with the Federal Competition and Consumer Protection Commission (FCCPC) to prevent any exploitation of consumers by ensuring consumer protection and maintaining product quality standards.