The Chief Govt of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, has disclosed that the nation’s every day petrol consumption is hovering round 45 million and 50 million litres, saying demand has elevated because the yuletide approaches.
Ahmed said this in Lagos on the ongoing OTL Africa Downstream Vitality Week, refuting claims that petrol consumption dropped to 4.5 million litres following the removing of subsidies by President Bola Tinubu.
In line with Ahmed, the consumption figures might drop after the yuletide when there can be much less demand for petrol due to the excessive value.
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“The present quantity that goes out available in the market is ranging between 45 and 50 million litres, together with the buffer that we have now; however at present it’s ranging between 45 and 50 million litres per day. We see that a variety of exercise is happening now as a result of it’s usually a excessive demand interval within the fourth quarter resulting in the yuletide however after that, we will probably see the consumption go down simply due to the costs,“ he stated.
He opined that the brand new worth would assist in decreasing gasoline smuggling throughout the borders.
“One other factor is we hope that this worth adjustment or liberalisation of the trade will now discourage cross-border (smuggling) as a result of there might be much less incentive to go cross-border, and that signifies that the product will stay throughout the nation. We are able to see now the extent between actual provide and precise demand available in the market,” he defined.
In line with Ahmed, the NMDPRA not dictates the value as a result of the market is absolutely liberalised following its deregulation.
“Our personal is to supply a free marketplace for all gamers. We’re overseeing the market typically to make sure that all of the gamers conform to the rules so far as enshrined within the Petroleum Trade Act.
“So, the explanation you see costs transferring is as a result of the market is principally free to maneuver. And in the event you recall, even the worldwide marketplace for each gasoline and crude oil, which drive the product market has been very risky due to the actions within the Center East. So, typically talking, the market is free to demand and provide,” he said.