The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified recent reports suggesting that the country’s petrol consumption has plummeted to 4.5 million litres per day, refuting the claims as inaccurate.
The clarification came in response to widespread media reports that linked the decline in petrol usage to the significant rise in fuel prices, which have surged by over 600% in the last two years, going from N198 per litre to N1070. According to the reports, this price hike has led to reduced patronage at many filling stations, with many Nigerians opting to leave their vehicles parked at home.
However, during a discussion at the ongoing 18th Africa Downstream Energy Week in Lagos, themed ‘Alliances For Growth,’ the Chief Executive of NMDPRA, Farouk Ahmed, addressed these claims, stressing that daily petrol consumption remains far higher than the reported figures.
Ahmed explained that Nigeria’s daily petrol consumption ranges between 45 million and 50 million litres, including reserves for unforeseen demand spikes.
“The current volume of petrol consumed in Nigeria, which is trucked to the market, remains between 45 and 50 million litres daily, including the buffer that exists,” he said.
He further noted that petrol consumption typically peaks in the fourth quarter of the year due to increased economic activities ahead of the festive season. “During this period, there is always heightened activity, especially towards Christmas. Afterwards, we expect the consumption levels to normalize. Additionally, the recent price liberalization is expected to curb cross-border smuggling, keeping more fuel within the country,” Ahmed explained.
While acknowledging the possibility of a decline in petrol consumption, he affirmed that the volume would certainly not drop to the previously reported 4.5 million litres per day.
