Domestic consumption of Premium Motor Spirit (PMS) or petrol in the country has recorded a significant drop after the deregulation occasioned by fuel subsidy removal.
According to the Chief Executive Officer, Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, from a pre-deregulation daily consumption figure of 66.7 million litres, the figure stands at 44.3 million litres per day, representing a 33.58 per cent drop.
Ahmed, who made this known in his keynote at the opening session of the 17th Oil Trading and Logistics (OTL) Africa Week, which kicked off in Lagos, on Monday, with the theme: “Energy, synergy and new beginnings,” also said of the 94 licenced oil marketers issued permits to import petrol, eight wholesale petroleum product suppliers have been able to deliver eight cargoes of PMS, with a cumulative volume of 251,000 metric tons (MT) (291,238,670.69 litres) between June and last month.
Although the NMDPRA boss blamed the drop in the number of licensed importers that delivered cargoes of petrol into the country to the constraint of foreign exchange (forex) illiquidity being experienced by oil marketing firms, he expressed optimism that necessary efforts is being taken by the Federal Government to improve the stability of the harmonised forex market which will eventually support the importation of PMS by more firms to complement efforts of the Nigerian National Petroleum Company Limited (NNPCL) in the importation of the product.
“Supply of Petroleum products is expected to be further enhanced and secured by the coming on stream of Dangote Refinery and the rehabilitation of NNPCL refineries in the short to medium term,” Ahmed assured.
Speaking on the importance of ensuring national energy security, the NMDPRA helmsman said gas remained a critical pillar in the energy transition goal especially because it will serve as a transition fuel. This, he further noted, accounts for development of strategic gas development frameworks through the Decade of Gas Programme (DOGP).
Besides, he said the full deregulation of the sector has further enhanced the country’s capacity to adopt Compressed Natural Gas (CNG) as a more sustainable and affordable alternative automotive fuel.
According to him, the launching of the Presidential initiative on CNG (PiCNG) by President Bola Tinubu, aimed at providing immediate and long-lasting infrastructure for modern mass transit systems, is a positive step for the energy sector.
The PiCNG, he further added, has already commenced work and is adequately supported with all necessary tools including required funding to meet its aspirations.
“The DOGP will ensure the accelerated growth of gas processing, storage, transportation, retail, and utilisation in Nigeria within the decade. The programme has optimal industry inclusiveness and is making steady progress in the implementation of all its strategic objectives, initiatives and projects,” Ahmed submitted.
