Nigeria’s daily consumption of premium motor spirit (PMS, commonly known as petrol) has fallen by 92 per cent following the recent removal of fuel subsidies by the federal government, BusinessDay found.
According to data from the Nigeria Midstream and Downstream Petroleum Regulatory Authority, NMDPRA’s daily truckout report, as of August 20, 2024, petrol consumption has decreased to 4.5 million liters per day.
In contrast, in May 2023, daily consumption was recorded at 60 million liters, marking a staggering 92 per cent decline since President Tinubu took office.
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According to the NMDPRA report, only 16 of Nigeria’s 36 states received product allocation from the Nigerian National Petroleum Company, NNPCL, during the month. As a result, states that did not receive allocations suffered significant gasoline shortages in August.
Among the states receiving allocations, Niger allocated the most, with 21 trucks, totaling 940,000 liters per day. Lagos followed with 12 trucks (726,001 liters) while Kaduna also received 12 trucks (454,001 liters).
Other states such as Oyo (12 trucks), Kano (9 trucks) and Ondo (6 trucks) also received allocations while Sokoto, Ogun, Osun, Gombe, Benue, Ekiti and Kebbi states received the amount is different, but I received an assignment.
President Tinubu announced the end of petrol subsidy on May 29, 2023, stating that the subsidy system, which has cost the government approximately N12 trillion over the past 10 years, is no longer sustainable and has left the country with a large debt burden. He said that this is a contributing factor.
Oladehinde Oladipo
Dipo Oladehinde is a seasoned energy analyst with experience across Nigeria’s energy sector and relevant know-how on Nigeria’s macroeconomics. He provides a combination of market intelligence, financial analysis, industry insights, micro- and macro-level analysis of a wide range of regional and international issues, as well as information for policy-making and personal direction. It also provides a technical foundation.
