Nigeria’s Petrol Consumption Plummets by 92% Amid Subsidy Removal and Distribution Gaps

Nigeria’s Petrol Consumption Plummets by 92% Amid Subsidy Removal and Distribution Gaps. Nigeria has experienced a sharp decline in daily petrol consumption, dropping by 92% in just over a year since President Bola Tinubu assumed office on May 29, 2023. Data from the Nigerian Midstream and Downstream Product Regulatory Authority (NMDPRA) for August 2024, obtained by Channels Television, indicates that daily consumption of Premium Motor Spirit (PMS) stood at 4.5 million litres as of August 20, 2024, compared to a staggering 60 million litres per day recorded in May 2023.

This drastic reduction in petrol consumption follows President Tinubu’s decision to end the petrol subsidy on May 29, 2023, a policy that had cost the government approximately N12 trillion over a decade.

An analysis of the NMDPRA’s September 2024 Daily Truck Out Report reveals further challenges in fuel distribution. Only 16 out of Nigeria’s 36 states received product allocations from the Nigerian National Petroleum Company Limited (NNPCL) during the month of August, leading to fuel scarcity in non-allocated states.

Niger State received the highest allocation, with 21 trucks (940,000 litres daily), followed by Lagos, which got 12 trucks (726,001 litres), and Kaduna, which also received 12 trucks (454,001 litres). Other states such as Oyo, Kano, and Ondo received smaller allocations, while states like Benue, Ekiti, and Kebbi received just one truck each.

The significant drop in fuel consumption and the uneven distribution of petrol reflect the ongoing impact of President Tinubu’s economic reforms, which have triggered a fuel crisis alongside rising inflation. This crisis has intensified following the removal of fuel subsidies, contributing to higher prices for petrol and other essential goods across the country.

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