Nigeria’s Daily Petrol Consumption Hits 50 Million Litres
The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reported that the country’s daily petrol consumption currently fluctuates between 45 million and 50 million litres. This revelation was made by NMDPRA’s Chief Executive Officer, Mr Farouk Ahmed, during the ongoing 18th Africa Downstream Energy Week in Lagos.
The theme for the 2024 OTL Africa Downstream Energy Week is “Alliances For Growth.” Speaking on the sidelines of the event, Ahmed noted that higher petrol consumption is typical in the fourth quarter of the year, particularly as the holiday season approaches, leading to increased industrial and consumer activities.
Ahmed expressed optimism that recent price adjustments and market liberalisation would help curb cross-border smuggling, thereby retaining more petrol within Nigeria. “We hope this price adjustment or liberalisation will discourage cross-border smuggling of the product, meaning that more petrol will stay within the country,” he said.
While acknowledging that actual petrol consumption levels may decrease, he stated that a significant drop is unlikely. Ahmed also highlighted the conference’s theme, underscoring the importance of alliances in the industry to enhance efficiency and reduce costs. He remarked that fewer shared facilities would be more effective than numerous idle private depots, benefiting both businesses and consumers.
“Collaborations or alliances among stakeholders will lead to greater efficiency and lower costs for consumers,” Ahmed emphasised. He further suggested that shared facilities among agencies like NMDPRA, the Nigerian Maritime Administration and Safety Agency, and the Nigeria Ports Authority could help eliminate operational inefficiencies.
While NMDPRA does not intend to enforce mergers, Ahmed encouraged industry players to explore partnerships, particularly in saturated markets, to boost efficiency and lower costs for consumers. “With strategic alliances in place, we can reduce costs for consumers by making the most of our existing infrastructure,” he stated.
Ahmed reassured attendees that NMDPRA would persist in evaluating project viability to ensure that consumers benefit from collaborative efforts and efficient operations, which are deemed crucial for a sustainable energy future in Nigeria. World Bank Sounds Alarm on Ohafia’s Housing Crisis
