Following subsidy removal, Nigerian fuel consumption fell to 46.38 million litres per day, according to the Nigerian government. Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Chief Executive, Ahmed Farouk said this during a stakeholder meeting with oil and gas downstream firms in Lagos.
He pointed out that only 10 of the 56 companies who sought for import licenses to supply gasoline committed to importing. This fall in fuel consumption is 2 million litres fewer than the previously announced amount of 48.4 million litres.
This is a 35% reduction from the 65 million litres per day prior to subsidy removal. In terms of fuel importation, the NMDPRA chief stated that over 56 businesses applied for import licenses to bring in petrol, but only 10 committed to doing so. He added that three marketers, namely Emadeb Energy, A.Y Shafa, and Prudent Energy, had imported petrol into the country.
The purpose of the conference is to encourage marketers to import so that petrol is available in every corner of the country. Because it is a free market with competition, marketers have the option of setting their own prices.
This free market will ensure that the Nigeria National Petroleum Corporation Limited (NNPCL) no longer dominate the market; other businesses will now compete with NNPCL.
Farouk also stated that there is collaboration with the Federal Competition and Consumer Protection Commission (FCCPC) to prevent marketers from taking unfair advantage of customers and to ensure consumer safety, consumer protection, and quality control within the industry.