The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that the daily consumption of petrol in the country has dropped significantly from 66.7 million liters to 44.3 million liters, following the deregulation process.
Mr. Farouk Ahmed, the Chief Executive of NMDPRA, has stated that the decrease accounts for around 33.58% on a daily basis.
Ahmed brought this to public attention during his opening statement at the beginning of the 2023 Africa Week of Oil Trading and Logistics (OTL) in Lagos on Monday.
The NMDPRA leader stated that permits were issued to eight out of 94 licensed oil marketers for the importation of wholesale petroleum products into the country.
He pointed out that the licensed suppliers successfully delivered eight petrol shipments, totaling 251,000 metric tons (291,238,670.69 liters) between June and September.
Ahmed stated that the decrease in the number of licensed importers was a result of the challenge of forex illiquidity, which had constrained the oil marketing companies’ ability to import the product.
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He voiced optimism that the government’s endeavors to improve the stability of the harmonized forex market would bolster the importation of petrol by additional oil marketing companies, alongside the Nigerian National Petroleum Company Ltd.
Ahmed said: ‘Supply of petroleum products is expected to be further enhanced and secured by the coming onstream of Dangote Refinery and the rehabilitation of NNPCL refineries in the short to medium term.’
‘The efforts of the Nigerian government towards ensuring that the overall national energy security of the country is administered in a manner that optimises position within the complex global energy dynamics.’
Ahmed highlighted the pivotal role of the adoption of gas as a transition fuel and the establishment of strategic gas development frameworks through the Decade of Gas Program (DOGP) as a key component in driving a structured energy transition in Nigeria.
‘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 it’s making steady progress in the implementation of all its strategic objectives, initiatives and projects,’ he said.
Ahmed observed that the full deregulation of the sector had additionally fortified the nation’s potential to adopt Compressed Natural Gas (CNG) as a more sustainable and budget-friendly alternative automotive fuel.
‘President Bola Ahmed Tinubu has launched the Presidential initiative on CNG (PiCNG), with the focus of providing immediate and long-lasting infrastructure for modern mass transit systems.’
He confirmed that the PiCNG had already commenced its work and was well-equipped with all necessary resources, including the required funding, to achieve its aspirations.