The Federal Government announced Wednesday that Nigeria's daily petrol consumption has decreased to 50 million liters, with domestic refineries supplying 50% of the national demand.
The remaining 50% is met through imports, with no overlap between domestic refining companies and import operations.
Following a stakeholder meeting in Abuja, Mr. Ogbugo Ukoha, Executive Director of Distribution Systems, Storage, and Retailing Infrastructure at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), addressed journalists, stating that petrol imports were implemented to prevent fuel shortages in the downstream sector.
He explained that the holiday season experienced no fuel scarcity, and that PMS demand increased yearly from 2021 to 2023, exceeding 60 million liters daily, averaging approximately 66 million liters. Following the presidential announcement of subsidy removal on May 29, 2023, daily consumption decreased to around 50 million liters.
Less than half of this daily average is currently supplied by domestic refineries; therefore, the Petroleum Industry Act (PIA) mandates that the deficit be met through imports.
Ukoha announced that starting March 1, 2025, the Authority will prohibit tankers with a capacity of 60,000 liters from transporting petrol and other petroleum products. This decision was made by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) despite opposition from truck owners.
The National Association of Road Transport Owners (NARTO) expressed concerns last week, stating that the ban could result in losses exceeding N300 billion due to their investment in over 2,000 trucks of this capacity currently used for transporting petroleum products nationwide.
Ukoha indicated that these large-capacity tankers have contributed to the recent increase in petrol tanker fires in the country.
Ukoha further observed that heavy-duty tanker trucks significantly contribute to the deterioration of Nigerian roads.
He announced the following resolution from a meeting of representatives from the DSS, FEMA, Federal Fire Service, Road Safety, NATO, NUPENG, MEMAN, PETROAN, IPMAN, DAPMAN, SON, and ONSA: effective March 1st, no tanker truck exceeding a 60,000-liter hydrocarbon load will be permitted to load at any depot.
He reiterated that, commencing March 1st, tanker trucks with capacities exceeding 60,000 liters will be prohibited from loading petroleum products at any depot. Furthermore, by Q4 2025, the loading and transportation of petroleum products in trucks exceeding 45,000 liters will be disallowed.