Nigeria’s Petrol Consumption Falls by 16.8% in July 2023, Report Says

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced a reduction in petrol consumption within the country, indicating a decline to 52 million litres per day in July 2023. As outlined in a report by Vanguard, the Authority revealed a significant decrease of 16.8% in petrol usage compared to the preceding month, when 64.96 million litres were consumed in June 2023.

Sourced from NMDPRA, the data offers an extensive breakdown of petrol inventory levels and sufficiency measurements across various points throughout 2023. This information illuminates aspects such as onshore and maritime stock, stagnant reserves, the number of days sufficiency is guaranteed, as well as the distribution of stock among major stakeholders within Nigeria’s petroleum industry.

As of the end of July 2023, the breakdown is as follows:

Petrol Stock and Dead Stock:

The land-based stock of petrol, excluding dead stock, was 1.120 billion litres.

Marine stock, accounting for berth and offshore availability, amounted to 521 million litres.

Combining the above figures, the total stock less dead stock reached 1.641 billion litres.

Depot deadstock stood at 83.637 million litres, contributing to the overall stock.

Taking into account dead stock, the total inclusive stock amounted to 1.725 billion litres.

Sufficiency Days:

Land-based days sufficiency was calculated at 21.55 days.

Marine days sufficiency, considering berths and offshore areas, was determined to be 10.02 days.

The combined total days sufficiency was measured at 31.57 days.

On July 1, 2023:

The land-based stock of petrol was reported as 1.059 billion litres.

Marine stock, including berth and offshore availability, was noted at 826.447 million litres.

Total stock, excluding dead stock, came to 1.885 billion litres.

Depot deadstock was reported as 83.095 million litres.

Incorporating dead stock, the total inclusive stock reached 1.968 billion litres.

Land-based sufficiency was calculated at 16.31 days, while marine days sufficiency stood at 12.72 days. The combined total days sufficiency was 29.03 days.

Petrol stock levels were distributed among key stakeholders:

Nigerian National Petroleum Corporation Limited (NNPCL) held a stock of 293.380 million litres.

Members of the Major Oil Marketers Association of Nigeria (MOMAN) collectively possessed 91.202 million litres.

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) held the highest share at 753.825 million litres.

As of July 31, 2023:

The national inland PMS stock amounted to 1.203 billion litres.

Within this, NNPCL held 377.68 million litres, MOMAN had 60.973 million litres, and DAPPMAN’s share was 765.16 million litres.

Interestingly, ThePressNG reported in July 2023 that Farouk Ahmed, the Authority’s chief, had indicated a significant reduction in daily petrol consumption figures.

He stated that daily consumption had dropped from 65 million litres, the previous rate before subsidy removal, to 46.3 million litres as of July.

He highlighted the trend of decreasing consumption figures from January through July, showcasing the impact of subsidy removal on consumer behaviour.