Fuel Subsidy: Nigeria’s fuel consumption drops by 28%, says NMDPRA

 

Fuel queue

This comes after President Bola Ahmed Tinubu announced that fuel subsidies would be phased off.

According to NMDPRA data given to Reuters, average daily petrol consumption decreased to 48.43 million litres (13 million gallons) in June, down from 66.9 million the previous month.

The petroleum regulatory industry stated that since the subsidy was eliminated, neighbouring countries such as Cameroon, Benin, and Togo, which relied on smuggled petrol from Nigeria, have seen their black markets collapse.

During his inaugural speech on May 29, 2023, President Tinubu announced the elimination of fuel subsidies, which had kept petrol prices low for decades.

In his Democracy Day speech on June 12, the President acknowledged that eliminating fuel subsidies would place an additional hardship on the masses, but he urged the country’s good people to bear the brunt of the decision since it would “save our country from going under.”

The elimination of the fuel subsidy, which quadrupled the price of petrol, has had an impact on nearly every sector of the economy, resulting in an increase in the price of products and services across the country.

Despite spending $2.41 billion, the World Bank said Nigeria might save up to $5.10 billion this year as a result of fuel subsidy elimination and foreign exchange reforms.

Last year, the Nigerian government spent $10 billion (£7.8 billion) on the subsidy.

Adewale Nurudeen

Recent Posts

US authorities slam Air Peace boss, Onyema, with fresh fraud charges

The Chief Executive Officer of Air Peace, Allen Onyema, has been hit with new charges…

2 years ago

Report: NUPRC has not approved $1.3bn Shell Renaissance deal

  Contrary to reports in a section of the media that the Nigerian Upstream Petroleum…

2 years ago

There’s a plan to derail Tinubu’s petroleum industry revolution

Tajudeen Suleiman It was a pleasant shock for me to read the National Bureau of…

2 years ago

NNPCL’s acquisition of OVH: Reps member, Miriam Onuoha, slams Atiku, says oil and gas sector should not be politicised

  A member of the House of Representatives, representing Isiala Mbano / Onuimo / Okigwe…

2 years ago

Fidelity Bank affirms commitment to data protection, strong corporate governance

  Leading financial institution in Nigeria, Fidelity Bank Plc, has assured its customers of unwavering…

2 years ago

NGX rates Fidelity Bank highest on corporate governance

  Fidelity Bank Plc complies with the highest corporate governance standards as the leading commercial…

2 years ago

This website uses cookies.