- Ogbugo noted that local refineries supply half of the daily requirements even though petrol importation persists to augment local supply
There has been a significant drop in daily consumption of petrol in Nigeria, the federal government has disclosed.
Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, made the disclosure during a stakeholders’ meeting in Abuja.
Speaking at the meeting, Ogbugo Ukoha, the Executive Director, Distribution Systems, Storage and Retailing Infrastructure of NMDPRA stated that the daily consumption dropped to 50 million liters per day.
Ogbugo noted that local refineries supply half of the daily requirements even though petrol importation persists to augment local supply.
Ukoha explained that it became imperative to import to ensure that scarcity does not return to the downstream sector.
Attributing the drastic reduction in consumption to subsidy removal, he said it was over 60 million litres per day before the administration of President Bola Tinubu.
“Let me speak a little bit about supply. All of us have experienced a yuletide free of any scarcity and let me just reconfirm that from year to year we saw an increase in the demand for PMS by 2021, 2022 up to 2023 just before the current administration came in.
“The daily PMS supply sufficiency was always in excess of 60 million, in fact averaging about 66 million a day for PMS.
“And following Mr. President’s withdrawal of subsidy, the announcement on May 29th, 2023, we immediately saw a steep decline in consumption and between then and as we speak, we’ve continued to do plus or minus 50 million,‘’ he stated.
“Of these 50 million liters averaging for each day, less than 50% of that is contributed by domestic refineries and so the shortfall in accordance with the PIA (Petroleum Industry Act) is sourced by way of imports,” he added.
Recall that President Tinubu upon assumption of office in May 2023, announced total removal of petrol subsidy, a development that has seen consumption capacity decline.