The Nigerian Midstream Downstream Petroleum Regulatory Authority has noted a shortfall in the production of petrol by local refineries, stating that they supply less than 50 percent of daily consumption.
Ogbugo Ukoha, the Executive Director for Distribution Systems, Storage, and Retailing Infrastructure at NMDPRA, disclosed this during a stakeholder meeting in Abuja on Wednesday.
According to Ukoha who explained that Nigeria currently consume 50 million litres daily, said that local refineries have not been able to meet the daily demand as they supply less than 50 percent of daily consumption. The shortfall he said is being provided for through import.
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He noted the decline in petrol consumption since the inception of the President Tinubu-led administration, which he attributed to the removal of fuel subsidy. He explained that the daily PMS supply sufficiency which was in excess of 60 million has dropped to about 50 million following the removal of fuel subsidy.
“All of us have experienced a Yuletide free of any scarcity. And let me just reconfirm that from year to year, we saw an increase in the demand of PMS by 2021, 2022, up to 2023, just before the current administration came in. The daily PMS supply sufficiency was always in excess of 60 million.
“In fact, averaging about 66 million a day for PMS. And following Mr. President’s withdrawal of subsidy, the announcement of May 29th, 2023, we immediately saw a steep decline on consumption. And between then and as we speak, we have continued to do plus or minus 50 million litres. That’s considerable reduction in volumes. Of these 50 million liters averaging for each day, less than 50 percent of that is contributed by domestic refineries. And so the shortfall in accordance with the PIA is sourced by way of imports.”
Ukoha speaking further, explained that none of the Oil marketing companies (OMCs) have imported petrol into the country this year.
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” The other OMCs are the ones that are importing the shortfall and if we did nothing to bridge that shortfall, we will have scarcity in our hands and that’s something that the regulator is minded to ensuring that there is sufficient supply of petroleum products across the country.
“So just for clarity, what I’m saying is that the contribution of local refineries towards the sufficiency is less than 50 percent. Currently between, January and February, 2025, is less than 50 percent of what we require daily and that shortfall is sourced by way of imports.
“Even though none of the OMCs that own the local refineries have imported PMS this year, we are also minded that if we find ourselves in the situation that the PIA described where you have to resort to the supplier of last resort, we will go to them and require them to bridge the gap. Never mind the fact that every OMC has a right to apply to the authority.”
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