Petrol consumption hits record low amid rising prices – Daily Trust

Nigerians consumed the bottom quantity of petrol in August amidst skyrocketing prices of the product, Daily Trust can report.

Analysis of the factsheets launched by the Nigerian Midstream confirmed that the typical consumption of 41.6 million litres of petrol consumed in August was 31 p.c discount from the 60.2 million litres consumed in January.

While evaluation confirmed consumption wavered from month to month as there isn’t any consistency within the drop, Daily Trust studies that the rising value of petrol has made many Nigerians to jettison their autos or cease the usage of petrol-fueled mills.

Even although the value improve was triggered by the US-Iran battle which disrupted gasoline provide, most Nigerians have accused the federal authorities of exposing Nigerians to bear the brunt of the battle whereas different nations have launched some form of subsidy to guard their residents.

A breakdown of the eight months common consumption confirmed that consumption was highest in January with a day by day common of 60.2 million litres consumed. This may very well be as a result of yuletide festivities.

Consumption dropped to a day by day common of 56.9 million in February and it went right down to 47.3 million in March.

It nevertheless, elevated to 51.1 million in April and additional dropped to 46.3 million in May. Consumption went again as much as 47.4 million in June and it maintained the rise to 48.3 million in July earlier than dropping to 41.6 million in August.

PMS provide

Ironically, the month of August noticed one of many highest day by day common PMS provides into the native market with 50.5 million litres provided day by day.

A breakdown confirmed that 64.9 million litres was provided day by day in January earlier than crashing to 32.5 million in February. It elevated to 40.1 million in March and 44.4 million in April and 47.4 in May.

It elevated considerably to 50.6 million in June however dropped to 45.5 million in July earlier than rising to 50.5 million in August.

The report additionally confirmed that Dangote provided 40.1 million litres per day of PMS in January whereas NNPC and different unbiased entrepreneurs imported 24.8 million. In January, Dangote provide elevated to 29.4 million whereas import dropped to 3m.

In March, Dangote’s provide elevated to 34.2 million however import elevated to five.9 million. For April, Dangote’s provide was 40.7 million litres whereas importers provided 3.7 million. May additionally noticed Dangote’s improve to 41.5 million, importers additionally elevated their provide to five.9 million.

But Dangote decreased its provide to 32.5 in June whereas importers elevated theirs to 18.1 million and the identical sample was adopted in July with Dangote decreasing provide to 25.8 million whereas importers elevated provide to 19.7 million.

August noticed Dangote’s provide elevated to 35 million whereas importers decreased provide to 14.6 million.

NNPCL’s low cost

While the federal government had launched a N66 per litre low cost for Nigerians in October to ease the rising value of the product, most Nigerians have mentioned the low cost is inaccessible to everybody and the quantity is simply too little to have an effect on the prices of products and companies.

Daily Trust had reported that business transport operators throughout the nation have expressed disappointment over the petrol low cost on the Nigerian National Petroleum Company Limited (NNPCL) shops, saying the intervention has but to supply significant aid from excessive working prices.

The transporters mentioned the low cost was too small to considerably cut back their working prices and troublesome to entry due to the procedures concerned.

Some additionally complained that spending time queuing for discounted petrol may cut back their working hours and the variety of journeys they make day by day.

Daily Trust studies that on October 8, 2026, the federal authorities introduced a 31-day low cost on petrol offered at NNPCL shops, with precedence given to public transport operators nationwide.

The announcement generated debate over whether or not the intervention amounted to a return of petrol subsidy, which President Bola Ahmed Tinubu ended on May 29, 2023.

The federal authorities, nevertheless, maintained that the low cost shouldn’t be a subsidy.

“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days in the first instance, with priority for public transporters nationwide. It’s not a subsidy; the government is saying we sell to you at a cost,” the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, mentioned whereas saying the initiative.

However, practically two weeks after the announcement, business transport operators who spoke to Daily Trust mentioned that they had but to really feel any important impression from the initiative.