By Adedapo Adesanya
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has put the daily consumption of premium motor spirit (PMS), otherwise known as petrol, in the country between 45 million and 50 million litres.
The chief executive of the agency, Mr Farouk Ahmed, said this at the 18th Africa Downstream Energy Week recently held in Lagos.
He noted that the consumption is gradually rising again in the fourth quarter of the year because of the activities associated with the period.
“The current volume consumed by Nigeria, which is trucked to the market, ranges between 45 million litres and 50 million litres, including the buffer that exists. However, we see a lot of activities going on now, because during the fourth quarter of the year, especially towards Christmas, usually, the industries experience a high volume of activities but after this, we can see the consumption go down,” he said.
Speaking further, Mr Ahmed expressed hope that recent price adjustments following the liberalisation of the petrol market would reduce cross-border smuggling, helping to retain more petrol within Nigeria.
“We hope that this price adjustment or liberalisation will discourage cross-border smuggling of the product because there will be less incentive to go across the border, meaning that the product will remain in-country. After this, we can see the level between real supply and actual demand in the market,” he added
He said that actual petrol consumption levels in Nigeria could decrease but were unlikely to drop significantly, tackling recent reports that consumption slid of 92 per cent.
Mr Ahmed also clarified that NMDPRA does not plan to enforce mergers but industry players were 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.
Mr Ahmed gave the assurance that NMDPRA would continue evaluating project viability to ensure consumer benefits, emphasising that cooperation and operational effectiveness are crucial for achieving a sustainable energy future in Nigeria.