Higher petrol consumption during the fourth quarter, especially near the holiday season, was typical due to increased industrial and consumer activities.
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| NMDPRA’s Chief Executive Officer, Mr Farouk Ahmed |
The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the country’s daily petrol consumption currently ranges from 45 million liters to 50 million liters.
NMDPRA’s Chief Executive Officer, Farouk Ahmed, confidently announced this during the ongoing 18th Africa Downstream Energy Week in Lagos.
The News Agency of Nigeria (NAN) reports that the theme for the 2024 OTL Africa Downstream Energy Week, “Alliances for Growth,” underscores the importance of collaboration in the industry. Ahmed emphasized that higher petrol consumption during the fourth quarter, particularly around the holiday season, is expected due to increased industrial and consumer activities. He firmly believes that recent price adjustments and market liberalization will effectively combat cross-border smuggling, ensuring that more petrol stays within Nigeria.
“We hope this price adjustment or liberalization will discourage cross-border smuggling of the product, meaning that more petrol will stay within the country,” he said.
He mentioned that while actual petrol consumption levels in Nigeria might decrease, a significant drop is unlikely. In discussing the conference's theme, Ahmed emphasized the importance of forming alliances within the industry to enhance efficiency and reduce costs. He argued that having fewer shared facilities would be more efficient than maintaining numerous idle private depots, which would benefit both businesses and consumers.
“Collaborations or alliances among stakeholders will lead to greater efficiency and lower costs for consumers,” Ahmed added.
He stated that collaborative facilities among agencies like the NMDPRA, the Nigerian Maritime Administration and Safety Agency, and the Nigeria Ports Authority could help reduce operational inefficiencies.
According to Ahmed, while the NMDPRA does not intend to enforce mergers, industry stakeholders are encouraged to explore partnerships, particularly in saturated markets, to enhance efficiency and lower costs for consumers.cy and lower costs for consumers.cy and lower costs for consumers.cy and lower costs for consumers.cy and lower costs for consumers.
“With strategic alliances in place, we can reduce costs for consumers by making the most of our existing infrastructure,” he stated.
Ahmed assured that NMDPRA would continue assessing project viability to benefit consumers. He emphasized that collaboration and efficient operations are essential for a sustainable energy future in Nigeria.
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