Amid rising energy costs, Nigerians spent about N1.3tn on buying Premium Motor Spirit (petrol) to power their vehicles and electricity generators in June, as consumption across the country reached 1.44 billion litres, according to the latest data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
Nigerians consume more petrol than any other fuel, and as a nation battling an unreliable power supply, a larger percentage of the population depends on petrol for self-generation. Following the removal of petrol subsidies two years ago, the amount Nigerians burn on fuel rose to an unimaginable high.
Based on NMDPRA data, Lagos, Ogun and the Federal Capital Territory, Abuja, were the major petrol consumers in June. The NMDPRA PMS truckout report for June indicated that a total of 1.44 billion litres of petrol were sent to states in the month. At a conservative average pump price of N900 per litre, this translates to about N1.3tn.
Out of the 1.44 billion litres trucked to states, Lagos consumed 205.7 million litres, valued at N185.1bn. Ogun followed with 88.7 million litres at a cost of N79.8bn, while the FCT received 77.5 million litres, valued at N69.8bn. Oyo, another state close to Lagos, got 72.8 million litres worth N65.5bn.
At the lower end, Jigawa State recorded the least allocation with 9.4 million litres (N8.5bn). It was followed by Ebonyi with 10.5 million litres (N9.5bn), Yobe with 11.7 million litres (N10.5bn), and Bayelsa with 11.9 million litres (N10.7bn).
At the regional level, the South-West emerged as the top consumer with 452.9 million litres valued at N407.7bn. Aside from Lagos, Ogun and Oyo, Osun received 35.5 million litres (N31.9bn), Ondo got 35.1 million litres (N31.5bn), and Ekiti consumed 15.3 million litres (N13.7bn).
The North-Central zone ranked second with 247.4 million litres worth N222.4bn. The FCT led with 77.5 million litres (N69.8bn), followed by Niger with 40.7 million litres (N36.6bn), Kwara with 34.8 million litres (N31.3bn), Benue with 25.7 million litres (N23.1bn), Nasarawa with 25.1 million litres (N22.6bn), Kogi with 24.1 million litres (N21.7bn), and Plateau with 19.4 million litres (N17.5bn).
The North-West consumed 230 million litres valued at N207.0bn. Kano led the zone with N61.4bn, followed by Kaduna with N38.8bn and Sokoto with N33.3bn. Kebbi spent N27.3bn, Katsina’s spending stood at N22.3bn, and Zamfara, N15.3bn. Jigawa was the lowest at N8.5bn.
In the South-South, total spending stood at N202.9bn on 224.9 million litres. Delta topped with N61.6bn; Rivers, N40.1bn; Edo, N38.8bn; Akwa Ibom, N30.4bn; and Cross River, N20.7bn, while Bayelsa was among the lowest with N10.7bn.
NMDPRA data showed that the North-East accounted for 152.8 million litres valued at N137.5bn. Adamawa topped the zone with N51.2bn, Bauchi followed with N27.9bn, Gombe and Borno recorded N17.3bn and N17.0bn, respectively, Taraba N13.6bn, and Yobe N10.5bn.
The South-East recorded the lowest spending nationwide with 132.7 million litres, valued at N119.6bn. Anambra topped the zone with 40.5 million litres (N36.5bn), followed by Imo, 30.6 million litres (N27.6bn); Enugu, 27.4 million litres (N24.7bn); Abia, 23.7 million litres (N21.3bn); and Ebonyi, 10.5 million litres (N9.5bn).
The figures highlight Nigeria’s uneven petrol consumption pattern, largely driven by population size, vehicle density and economic activity. It was observed that urban and industrial centres such as Lagos, Ogun, Abuja, Oyo and Kano dominated demand, while sparsely populated states such as Jigawa, Ebonyi, Bayelsa and Yobe consumed far less.
In June, the President of the Dangote Group, Aliko Dangote, revealed that most Nigerians were unaware that they currently pay 55 per cent of what other West African countries pay for PMS. Dangote also said his refinery had aided the reduction of fuel prices by selling petrol between N815 and N820 per litre.
He also noted that Nigerians are benefiting from local refining, as the price of petrol has dropped significantly compared to neighbouring countries. “In neighbouring countries, the average price of petrol is around $1 per litre, which is N1,600. But here at our refinery, we’re selling at between N815 and N820. Many Nigerians don’t realise that they are currently paying just 55 per cent of what others in the region are paying for petrol,” he noted.
Recall that petrol prices jumped from an average of N200 per litre to their current levels, following President Bola Tinubu’s subsidy removal on May 29, 2023. Before the Dangote refinery began petrol production last year, the Nigerian National Petroleum Company Limited used to be the sole-determiner of fuel prices.
The NNPC, which was the sole petrol importer at the time due to fuel subsidies, seems to have ceded that role to the 650,000-barrel-per-day Dangote refinery, the only functional petrol-producing refinery as of the time of filing this report. Petrol prices surged to about N1,200 per litre last year when the NNPC completely removed subsidies, but the Dangote refinery implemented repeated price cuts to bring prices below N900/litre.
While many Nigerians welcomed the reductions, fuel marketers lamented the losses. Meanwhile, some Nigerians insisted that petrol prices should return to a range of N200 and N500 per litre, saying that is the only way to fight rising inflation.
“The prices should drop to between N200 and N500, and you’ll see the impact on virtually all sectors of the economy. Selling petrol above N850 per litre is still high and causing inflation to spike,” a Lagos resident, Favour Samson, stated.
COURTESY: PUNCH
