₦airaland Forum

Nigeria’s Daily Petrol Consumption Surges to 50m Litres Amid Scarcity


The average volume of petrol consumed in Nigeria has risen to 50 million litres per day, up from about 46.38 million litres in July 2023, two months after subsidy was removed by the current administration.

The surge in petrol consumption despite the ravaging scarcity of the product at the filling stations in Nigeria has been attributed to the return of smuggling activities fueled by subsidy payment.

Head of Public Affairs, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. George Ita, disclosed the new consumption figure in a response to Economic Confidential’s inquiry.

Ita stated this while dispelling speculations that daily fuel consumption in the country had hit 60 million litres to 65 million litres.

“Now, I can confirm to you that our daily consumption hasn’t surged up to anywhere near these (60 million to 65 million litres) levels. Average consumption is 50 million litres daily,” Ita said.

He, however, sidestepped the question on the return of smuggling of petrol to other neighbouring African countries, arguing that only the security agencies that man Nigeria’s international border points had the power to address such issue.

In July last year, NMDPRA had announced that the country’s petrol daily consumption figure stood at 46.38 million litres, due to subsidy removal by the federal government.

The Chief Executive of NMDPRA, Mr. Ahmed Farouk, who disclosed this at the time, said that the figure represented a 35 per cent reduction when compared with the 65 million litres per day, prior to subsidy removal.

According to him, an average truck out on a daily basis for petrol consumption, after announcing subsidy removal on May 29, reduced to 46.38 million litres.

“The current daily consumption has drastically reduced as against 65 million litres, which was the daily consumption before subsidy removal.

“In January, it was 62 million per litre; February, 62 million per litre; March, 71.4 million per litre; April, 67.7 million per litre; May 66.6 million per litre; June, 49. 5 million per litre and July, 46.3 million per litres,” Ahmed said then.

Officially, petrol price is now N897 per litre, following the recent price increase by the Nigerian National Petroleum Company Limited (NNPC) but many filling stations in the country are selling between N930 to N950 while in some locations, the pump price hovers between N1000 and N1400 per litre.

NNPC had also stated that the current petrol pump price is not yet the actual market price, noting that the price will keep adjusting until it reflects the international price of the commodity, meaning that more price increases could take place any time soon.

However, petroleum products marketers and analysts have argued that part of the reasons for the current scarcity of petrol in Nigeria and the return of smuggling to neighbouring African countries was because of the reappearance of subsidy and the re-emergence of the NNPC as the sole importer of petrol.

Chief Executive Officer of Swift Oil Limited, Stillian Mitakev, told our correspondent, exclusively that the only solution to the scarcity and smuggling is for the government to deregulate petrol pricing and allow the market to determine the pump price.

With the current situation where NNPC enjoys the sole importer status and with all the advantages accrued to it, Mitakev said marketers cannot compete with the national oil company.

According to him, only NNPC gets foreign exchange (FX) at the official market rate and also uses its crude sale proceeds to buy dollars at a very discounted rate, whereas marketers were left with the option of sourcing dollars at the parallel market.

He said that no marketer will buy dollars at the parallel market rate, import petrol and sell the product below its landing cost, noting that that is the reason marketers pulled out from importing Premium Motor Spirit (PMS).

“Parallel market is N1,600/$; N1,620/$ or thereabout. Whereas official rate is N1,580/$, but you cannot compare it with what NNPC is calculating to set their pump price. And NNPC calculates its price at N650/$ because of its crude sale proceeds. No marketer has that advantage,” Stillian said.

Despite the hopes that the Dangote Refinery will ease petrol shortages in Nigeria, the marketer argued that the only way the 650,000 barrels per day facility could achieve that is when the market is deregulated.

He added: “The only way Dangote Refinery can ease the petrol supply challenge is if the government deregulates the price because Dangote has not set their price now.

“If they do it on market price, their price should be about N1,500 to N1,600 per litre. Anywhere in the world, petrol is between 90 cents and $1. How much is $1? It’s N1,600.”

https://economicconfidential.com/2024/09/nigeria-daily-petrol/

I would keep saying it, the government is incompetent.

Nigeria is in a situation where those in government today are there to loot and enrich themselves.

How can a country that has comparative advantage in a major resource over neighbouring countries say that its own citizens must pay higher for that natural resource to discourage other countries from smuggling out that resource?

I can't wrap my head around it.

It means even if pms can be sold profitably at N500 per litre in nigeria, because it is sold at the equivalent of N1,200 in Chad, niger or Benin, then Nigerians must pay N1,500 to discourage smuggling...

How does this make socio-economic sense to anyone?

Why should there be scarcity if we actually consumed up to that amount?

Those are the ridiculous figure they want FG to be paying fuel subsidy on

The oil marketers have been trying to push nonsense lately but they have been caught red handed

No to fuel subsidy

The whole thing is a scam, from head to bottom

The more you look, the __________ you see.
A. More
B. Most
C. Least
D. Less
E. None of the above.

CodeTemplarr:
The more you look, the __________ you see.
A. More
B. Most
C. Least
D. Less
E. None of the above.

The more things become blurry

ivandragon:
I would keep saying it, the government is incompetent.

Nigeria is in a situation where those in government today are there to loot and enrich themselves.

How can a country that has comparative advantage in a major resource over neighbouring countries say that its own citizens must pay higher for that natural resource to discourage other countries from smuggling out that resource?

I can't wrap my head around it.



It means even if pms can be sold profitably at N500 per litre in nigeria, because it is sold at the equivalent of N1,200 in Chad, niger or Benin, then Nigerians must pay N1,500 to discourage smuggling...

How does this make socio-economic sense to anyone?

Imagine many failed promises regarding pH refinery resuming production after gulping billions of dollar

We would hold Tinubiu responsible if he failed to clean the mess NNPCL has brought upon this nation.

ivandragon:
I would keep saying it, the government is incompetent.

Nigeria is in a situation where those in government today are there to loot and enrich themselves.

How can a country that has comparative advantage in a major resource over neighbouring countries say that its own citizens must pay higher for that natural resource to discourage other countries from smuggling out that resource?

I can't wrap my head around it.

It means even if pms can be sold profitably at N500 per litre in nigeria, because it is sold at the equivalent of N1,200 in Chad, niger or Benin, then Nigerians must pay N1,500 to discourage smuggling...

How does this make socio-economic sense to anyone?

Exactly. That means dangote only has to price his outputs low in such a manner smugglers are motivated to keep moving products across west and east africa.

NNPC as a group needs total overhauling

Kyari seems to be a bigger failure than that guy from that side

Marketers too seems to have a freehand to make propositions and still do their thing anyhow. NNPC needs to be in charge of all this

StaffofOrayan:
The whole thing is a scam, from head to bottom

😂😂😂😂😂😂😂😂 A huge scam, I tell ya! The smuggling of fuel is real. 🤣🤣🤣🤣🤣

COMRADES, anything that withstand this great tribulation deserves an award, almost everything is down by 50%

CodeTemplarr:
Exactly. That means dangote only has to price his outputs low in such a manner smugglers are motivated to keep moving products across west and east africa.

So we must suffer for the incompetence of government?

helinues:
Why should there be scarcity if we actually consumed up to that amount?

Those are the ridiculous figure they want FG to be paying fuel subsidy on

The oil marketers have been trying to push nonsense lately but they have been caught red handed

No to fuel subsidy

What is Tinubu doing about it?

Is he not the minister for petroleum?

Ttalk:
We would hold Tinubiu responsible if he failed to clean the mess NNPCL has brought upon this nation.

How do you want to hold him?

From his waist or from his hand?

Some of You guys don't just have an idea what you guys have done by supporting Tinubu and you don't even have an idea the kind of person he is, you think some of us who were opposing him from becoming president were doing it because we hated him..

I ask again, what can you do to hold him responsible?

Only a daft Mumu man/woman will believe any figure from NNPCL and the coterie of parasite in that stealing organization.
Even though there was chronic scarcity of pms in Nigeria last month, NNPCL still found a way to cook up figures of close to 50million litres a day consumption in Nigeria.
We know the game,Abba Kyari and his cohorts of parasitic elements in NNPCL must justify the subsidy they want to remove from the federation account this month so they cook up figures. They must do the usual mago mago to the subsidy money.
I'm sure they will bring receipts for close to 1.5 billion litres of PMS as product imported in the last month,awon ole,barawo banza,thief feeding fat on Nigeria.
NNPCL we are waiting for how much subsidy you will claim in the month of September since PMS is now 1200 in many filling stations.
I really wonder why Asiwaju is playing hanky panky with Nigerians on sacking Mele kyari and his cohorts in NNPCL,this is one year since he promised to make the Refinery work but no results, anyways that's why They will continue to oppose Dangote and the Refineries will be never work,all is because of the filthy subsidy pot they are licking.
Asiwaju sack Mele kyari now.
God bless Nigeria.

DevilsEqual:
NNPC as a group needs total overhauling

Kyari seems to be a bigger failure than that guy from that side

Marketers too seems to have a freehand to make propositions and still do their thing anyhow. NNPC needs to be in charge of all this

You guys are very funny, so you you think Tinubu is thinking of doing any clean up in NNPC, this is exactly what he wants, you think if Tinubu wanted to clean NNPC he wouldn't have done it even before arresting Emefiele?

Kyari is doing a very good work for Tinubu, it's so bad you guys don't even know the type of person you are all supporting...