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HomeTop NewsCompetition heats up in Nigerian petrol market as subsidy removal spurs importer...

Competition heats up in Nigerian petrol market as subsidy removal spurs importer interest

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…Petrol consumption down to 46.34 mln liters per day ~NMDPRA

… Regulator monitors petrol quality after subsidy removal

Nigeria’s daily petrol consumption has dropped to 46.34 million litres per day following the removal of subsidies by the Federal Government, according to Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The Chief Executive of NMDPRA, Ahmed Farouk disclosed this information during a stakeholders meeting held in Lagos with oil and gas downstream operators.

This figure signifies a 35 percent reduction compared to the previous daily consumption of 65 million litres before the subsidy removal.

Since the announcement of the subsidy removal on May 29, the average daily truck out for petrol consumption has decreased to 46.34 million litres.

Farouk stated, “The current daily consumption has drastically reduced as against 65 million litres which had been the daily consumption before subsidy removal.”

He further provided a breakdown of the daily consumption figures from January to July, with July recording the lowest consumption at 46.3 million litres per day.

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The purpose of the meeting was to assess the downstream sector after the subsidy removal and express gratitude to marketers who have taken up the opportunity to import petrol.

In terms of petrol importation, Farouk mentioned that 56 companies applied for import licenses, but only 10 committed to importing. Presently, Emadeb Energy, A.Y Shafa, and Prudent Energy are the three marketers who have imported petrol into the country.

Additionally, 11 Plc and others have expressed interest in importing petrol in August and September.

Farouk emphasized that the era of subsidy payment has ended and encouraged interested marketers to apply for licenses.

The objective is to promote petrol availability nationwide through market competition.

He highlighted the importance of avoiding dominance by a single player like the Nigeria National Petroleum Corporation Limited (NNPCL) and stressed the need for a liberalized market with multiple competitors.

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