Nigeria’s average daily petrol consumption has plunged by 17.1 million litres since the removal of fuel subsidies in May 2023, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
During a State House briefing on Tuesday, NMDPRA CEO Farouk Ahmed revealed that daily consumption has decreased to 49.8 million litres from the pre-subsidy removal level of 66.9 million litres. The country recorded its lowest consumption of 41.6 million litres in September 2023 and highest demand of 59.7 million litres in May 2024.
Ahmed detailed the fluctuations in Nigeria’s fuel consumption patterns over the past decade, noting that daily usage was 48.71 million litres in 2015, gradually increasing to 66.7 million litres by 2022. Before subsidy removal in early 2023, consumption reached 66.9 million litres daily, which Ahmed described as “very high.”
“The price was low, the borders were porous, the price in 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 explained.
He attributed the recent consumption decline to reduced driving due to increased fuel costs, adding that since subsidy payments were halted, “the nation now has excess funds for other sectors.”
Source: thecable.ng