CEM REPORT, ENERGY | The consumption of Premium Motor Spirit, popularly called petrol dropped by an average of about 18.5 million litres daily in June.
This is as Nigerians consumed a total of 11.26 billion of petrol in the first half of 2023 (H1’23).
According to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the reduction in the consumption of petrol can be attributed to the announcement of the complete removal of fuel subsidy by President Bola Tinubu on May 29, 2023.
Data from the regulatory reveals that before the announcement Nigerians consumed a total of 9.9 billion litres, that is between January 1 and May 28, 2023.
Average consumption during the five-month period when subsidy on petrol was still in place was placed at 66.9 million litres.
However, after the announcement of fuel subsidy removal, the NMDPRA data details that the total petrol consumption across the country was 1.36 billion litres, while the average daily consumption was put at 48.43 million litres. This is between June 1 to June 28, 2023.
More so, the Nigerians kept consumption of petrol at a peak of 78.84 million litres recorded on June 20 while the lowest consumption between June 1 to June 28, 2023, was put at 470,000 litres recorded on June 11.
However, when the subsidy was still in place the nation consumed over 100 million litres daily.
Further analysis reveals that the difference between the subsidy era and the post-subsidy era stands at 18.5 million less consumption.
Recall that President Bola Ahmed Tinubu during his inaugural address announced the complete removal of fuel subsidy and other energy subsidies.
This sparked a chain reaction in several sectors especially transportation which is presently biting hard on many Nigerians.
The Nigerian National Petroleum Company Limited (NNPCL) increased the retail prices of fuel to above ₦450 per litre from the subsided ₦185 per litre.
