The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reported a significant decline in the country’s daily petrol consumption. Before deregulation, it stood at 66.7 million liters per day, but it has now dropped to 44.3 million liters, representing a reduction of about 33.58%, as stated by Mr. Farouk Ahmed, the Chief Executive of NMDPRA,Daily Trust report.
He shared this information during the keynote address at the opening session of the 2023 Africa Week of Oil Trading and Logistics (OTL) in Lagos on Monday.
Ahmed also mentioned that out of the 94 licensed oil marketers, only eight wholesale petroleum product suppliers were granted permits to import into the country. These licensed importers delivered a total of 251,000 metric tons (equivalent to 291,238,670.69 liters) of petrol between June and September. The decrease in the number of licensed importers was attributed to the challenges posed by forex illiquidity, which hindered the oil marketing companies’ ability to import the product.
He expressed optimism that the government’s efforts to stabilize the forex market would facilitate increased importation of petrol by more oil marketing companies, in collaboration with the Nigerian National Petroleum Company Ltd.
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Furthermore, Ahmed pointed out that the supply of petroleum products would be further bolstered by the commissioning of the Dangote Refinery and the ongoing rehabilitation of NNPCL refineries in the short to medium term. He emphasized the government’s commitment to ensuring national energy security while optimizing Nigeria’s position in the global energy landscape.
Ahmed stressed that a key component of Nigeria’s structured energy transition is the adoption of gas as a transition fuel and the implementation of strategic gas development frameworks through the Decade of Gas Program (DOGP). This program aims to accelerate gas processing, storage, transportation, retail, and utilization in Nigeria within the decade.
He also noted that the full deregulation of the sector has enhanced the nation’s ability to embrace Compressed Natural Gas (CNG) as a more sustainable and affordable alternative automotive fuel. The Presidential initiative on CNG (PiCNG) has been launched by President Bola Ahmed Tinubu to establish modern mass transit systems, with adequate funding and support.
In addition, it was reported that the event saw participation from over 200 attendees and featured more than 20 exhibitors. (NAN)
