Petrol consumption in Nigeria drops to 30m liters, then surges to over 60m

By Dickson Omobola

The mystery surrounding Nigeria’s daily consumption of petrol, known as Premium Motor Spirit (PMS), has taken a puzzling turn. After President Bola Tinubu announced the removal of the subsidy on May 29, 2023, consumption dropped to 30 million litres but quickly surged back to over 60 million litres. The sudden increase has been attributed to renewed smuggling across borders where petrol is sold at higher prices than in Nigeria.

Previously, the price of petrol in Nigeria varied from N254 to N800 depending on the region. The uncertainty surrounding daily consumption has led to speculations and controversies, especially regarding the subsidy payment system.

With the subsidy removed, consumption initially decreased significantly, causing a ripple effect in neighbouring countries where prices soared. However, challenges in controlling smuggling persist due to Nigeria’s vast borders and limited enforcement capabilities.

Despite efforts to stabilize the market, the Nigerian National Petroleum Corporation faces financial strain, with debts exceeding $6 billion. This has led to fuel shortages and disruptions in the supply chain, impacting consumers nationwide.

As international oil prices fluctuate, the smuggling of petrol across borders continues to pose challenges, affecting daily consumption patterns and market dynamics in Nigeria.

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