Petrol Demand Set to Reach 50 Million Litres Daily, Says NMDPRA
At the OTL Africa Downstream Energy Week in Lagos, Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), announced a potential rise in daily petrol consumption in Nigeria, which could reach up to 50 million litres as the festive season approaches. Following the recent subsidy removal by President Bola Tinubu, Ahmed noted a temporary decrease in consumption to 4.5 million litres. However, demand has since stabilized between 45 and 50 million litres daily, reflecting heightened yuletide activity.
Ahmed anticipates a drop in consumption post-holidays due to the high cost of fuel, which has moderated demand. “Current market volumes are between 45 and 50 million litres daily, including buffer stock. But we expect demand to ease off after the yuletide,” he said. He highlighted that the recent price liberalization is curbing cross-border fuel smuggling, ensuring a stable supply for domestic consumers.
With the downstream sector now fully deregulated, prices are driven by global market forces rather than fixed rates. Ahmed underscored the volatility of global oil markets, especially given geopolitical tensions in the Middle East, as a factor affecting local fuel prices. He reiterated that NMDPRA’s role is to maintain a free market and enforce regulations outlined in the Petroleum Industry Act.
In addition, Ahmed pointed to transformative reforms in Nigeria’s downstream oil and gas sector, making it an attractive investment destination. With policy backing, Nigeria aims to boost daily crude oil production to 3 million barrels, expand domestic gas use to 10 billion standard cubic feet per day, and enhance refining capacity, positioning the country as a net exporter of petroleum products.
These strides align with the government’s efforts to streamline regulatory frameworks and support the petroleum sector’s growth, Ahmed noted, promising significant opportunities for investors and industry players alike.
