Monthly fuel consumption drops by 18.5million litres after deregulation ? FG

The volume of Premium Motor Spirit, also known as petrol, that was consumed across the country in the first half of 2023 is 11.26 billion litres, the Federal Government has said.

The FG said after the removal of subsidy on petrol, following the pronouncement by President Bola Tinubu on May 29, 2023, PMS consumption reduced by an average of about 18.5 million litres daily in June.

Data obtained on Sunday, July 9 from the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja, showed that between January 1 and May 28, 2023, which was the pre-deregulation period, the total amount of petrol consumed nationwide was about 9.9 billion litres.

The average consumption for the 148-day period was put at 66.9 million litres, indicating the country consumed an average of 66.9 million litres of petrol daily during the five-month period when subsidy on petrol was still in place.

But figures indicated that between June 1 to June 28, 2023, which was described as the post-deregulation period, the total petrol consumption across the country was 1.36 billion litres, while the average daily consumption was put at 48.43 million litres.

The President, Nigeria Association for Energy Economics, Prof. Yinka Omorogbe, said the fuel subsidy regime created avenues for terrible practices.

Omorogbe said the removal of fuel subsidies was a right step despite the harsh impact on Nigerians.