The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the country’s petrol daily consumption figure stands at 46.34 million litres per day, due to subsidy removal by the Federal Government.
Chief Executive, NMDPRA, Mr Ahmed Farouk, disclosed this during a stakeholders’ meeting with oil and gas downstream operators on Monday in Lagos.
He said the figure represented 35% reduction when compared with the 65 million litres per day, prior to subsidy removal.
According to him, an average truck out on daily basis for petrol consumption, after announcing subsidy removal on May 29, reduced to 46.34 million litres per day.
“The current daily consumption has drastically reduced as against 65 million litres which had been the daily consumption before subsidy removal.
“In January, it was 62 million litres per day; February, 62 million litres per day; March, 71.4 million litres per day; April, 67.7 million litres per day; May 66.6 million litres per day; June, 49. 5 million litres per day and July, 46.3 million litres per day,” he said.
The NMDPRA boss said the essence of the meeting was to review the downstream sector after the subsidy removal and also to thank marketers who had taken the offer to import petrol.
On petrol importation, Farouk said that over 56 companies applied for import licences to bring in petrol, while only 10 made a commitment to import.
The marketers have the choice to fix their price, because it is a free market where there will be competition.
He said that currently three marketers, namely Emadeb Energy, A.Y Shafa and Prudent Energy had imported petrol into the country, adding that others like 11 Plc, have indicated interest to import petrol in August and September.
“The era of subsidy payment is gone; we encourage all marketers who are interested in importing petrol to apply for a licence.
“The meeting is to encourage marketers to import, so that there will be availability of petrol at every nook and cranny of the nation.
“The marketers have the choice to fix their price, because it is a free market where there will be competition.
“It is no longer Nigeria National Petroleum Company Limited (NNPCL) dominating the market, there will be other players to compete with NNPCL.
“We do not want any dominant player in the market, that was why we liberalised the market for everybody to play,” Farouk emphasised.
Farouk said the Authority is working with the Federal Competition and Consumer Protection Commission (FCCPC), to checkmate marketers from taking undue advantage of the consumers.
He said the NMDPRA would ensure consumer protection at every station, adding that the quality of products imported would be in focus to avoid substandard petrol.
“We will ensure safety, consumer protection and standard by ensuring quality control among marketers.”
NAN reports that the meeting had in attendance managing directors of all downstream sector operators, delegation of Major Oil Marketers Association of Nigeria (MOMAN), and Depots Owners Association of Nigeria (DAPPMAN), among others.
