• Sunday, June 16, 2024
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BusinessDay

Nigeria’s fuel consumption drops 28% post deregulation

Data exposes FG’s insincere denial of ‘secret’ petrol subsidy

Nigeria’s average daily petrol consumption has fallen by 28 percent since President Bola Tinubu scrapped subsidy on fuel at his inauguration in May, data from the industry regulator shows.

According to figures released to Reuters by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), average daily petrol consumption fell to 48.43 million litres in June 2023.

The report also showed that between January 1 and May 28, 2023, which was the pre-deregulation period, the total amount of petrol consumed nationwide was 66.9 million litres.

Read also: Naira trades at N795 per dollar in black market

BusinessDay reported in June that the volume of average daily sales at petrol stations across Lagos is dropping as Nigerians buy less fuel than they bought before the price adjustment.

This was also seen in the federal capital territory, as many filing stations confirmed a drop in patronage as motorists parked their cars and used public transport or joined colleagues.

Mele Kyari, group chief executive officer, Nigerian National Petroleum Company Limited (NNPCL) said in February that over N400 billion of is spent on subsidy monthly

However, the World Bank has projected that Nigeria will save N3.9 trillion in 2023 following subsidy removal.