NMDPRA Reports 17 Million Litre Drop in Daily Petrol Use Since Subsidy Removal

Nigeria’s daily petrol consumption has seen a significant drop since the removal of the fuel subsidy, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Speaking at a State House briefing on Tuesday, NMDPRA Chief Executive Officer, Farouk Ahmed, revealed that the country’s average daily petrol use has declined to 49.8 million litres — down from a staggering 66.9 million litres recorded in May 2023.

Ahmed attributed the 17.1 million-litre reduction to the elimination of subsidies, border control measures, and exchange rate harmonisation, all of which have reshaped consumer behaviour and market dynamics.

“In the past, low petrol prices, porous borders, and the subsidised naira made it profitable to smuggle fuel across neighbouring countries,” Ahmed explained. “But with the subsidy gone and a more realistic exchange rate in place, the market has self-regulated.”

The CEO outlined historical consumption data to underscore the impact of policy changes. In 2015, daily petrol consumption stood at 48.71 million litres. This figure steadily rose to 66.7 million litres by 2022. Between January and May 2023, just before subsidy removal, consumption peaked at 66.9 million litres — a level Ahmed described as “very high.”

However, the post-subsidy period told a different story. From June to December 2023, daily petrol use dropped to 47.5 million litres. Consumption edged back up to 51.8 million litres between January and August 2024, before settling at 49.8 million litres from September 2024 to date.

According to Ahmed, the nation’s lowest fuel consumption in the post-subsidy era was recorded in September 2023 at 41.6 million litres per day, while the highest was in May 2024 at 59.7 million litres.

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He emphasized that reduced driving, prompted by higher fuel costs, has been a major contributor to the trend. “People are driving less, and that’s a clear indicator of how price influences demand,” he noted.

Ahmed highlighted a silver lining: the end of the subsidy era has freed up significant government funds. “Since subsidy payments stopped, the nation now has excess funds for other sectors,” he said, pointing to the potential for increased investment in infrastructure, health, and education.