Nigeria’s daily petrol consumption hits 50 million litres – NMDPRA Report

The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reported that the nation’s daily petrol consumption currently stands between 45 to 50 million litres.

This announcement was made by NMDPRA’s Chief Executive Officer, Mr. Farouk Ahmed, during the 18th Africa Downstream Energy Week in Lagos.

Themed “Alliances for Growth,” the 2024 OTL Africa Downstream Energy Week highlights trends in the sector, with Ahmed noting that Nigeria typically sees a rise in petrol demand in the fourth quarter due to increased industrial and consumer activities leading up to the holiday season.

Ahmed also expressed optimism that recent adjustments in petrol pricing and market liberalisation could help curb cross-border smuggling, potentially ensuring more petrol remains 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.

He said that actual petrol consumption levels in Nigeria could decrease but were unlikely to drop significantly.

Discussing the conference’s theme, Ahmed emphasised the importance of alliances in the industry for efficiency and cost reduction.

He said that fewer shared facilities would be more efficient 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 said.

He said that shared facilities among agencies such as NMDPRA, Nigerian Maritime Administration and Safety Agency, and the Nigeria Ports Authority could reduce operational inefficiencies.

According to Ahmed, NMDPRA does not plan to enforce mergers, but industry players are encouraged to consider partnerships, especially in saturated markets, to improve 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 said.

Ahmed gave the assurance that NMDPRA would continue with evaluating project viability to ensure consumer benefit.

According to him, collaborative efforts and efficient operations are critical for a sustainable energy future in Nigeria. (NAN)