Monthly Petrol Consumption Reduces By 18.5million Litres After Deregulation – FG

The Federal Government has said that the volume of Premium Motor Spirit, widely known as petrol, that was used nationwide in the first half of 2023 is 11.26 billion litres.

However, observations showed that consumption reduced by an average of about 18.5 litres daily in June after the removal of petrol subsidy by the President Bola Tinubu administration on May 29, 2023.

Data source from the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja on Sunday, suggest that the total volume of petrol consumed between January 1 and May 28, 2023, which was the pre-subsidy removal period, was about 9.9 billion litres.

The average consumption for the 148-day period was pegged at 66.9 million litres, showing that Nigeria consumed an average of 66.9 million litres of petrol daily during the five-month period when subsidy on petrol was still effective.

But data from the Federal Government agency showed that between June 1 to June 28, 2023, which termed the post-deregulation period, the total petrol consumption across the country was 1.36 billion litres, while the average daily consumption was put at 48.43 million litres.

An analysis by Punch suggests that the gap between the average monthly consumption figure during the pre-deregulation and post-deregulation period was about 18.5 litres.

See Also: Petrol Subsidy: TUC Makes Demands To Cushion Effect On Citizens

This shows that average daily consumption of petrol nationwide dropped by about 18.5 million litres after subsidy on commodity was stopped by the Federal Government.

It was, however, observed that petrol consumption rose above 100 million litres in some days, while it fell to below 10 million litres in few other days.

A random pick of petrol consumption figures contained in the NMDPRA report, for instance, showed that on March 8, April 20, and May 16, Nigerians consumed 103.6 million litres, 105.02 million litres, and 101.9 million litres respectively.

These were during the ore-deregulation days, as figures from the post-deregulation period indicated that the country never consumed beyond 78.84 million litres all through the 28-day period captured in the document. In fact, the 78.84 million litres was consumed on June 20, and it was the highest consumption figure during the post-deregulation period, while the lowest figure during the same period was the 470,000 litres that was consumed nationwide on June 11.

Obiajulu Joel Nwolu

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