Oil marketers within Nigeria express considerable apprehension regarding substantial financial losses, as approximately 10,000 oil distributors face imminent closure, attributed to a continued decline in fuel consumption resulting from escalating prices.
Data emanating from the Nigerian Midstream and Downstream Petroleum Regulatory Authority indicates that fuel consumption has diminished to 4.5 million litres per day in August 2024, a dramatic decrease from 60 million litres per day recorded in May 2023—representing an extraordinary 92 per cent reduction.
Furthermore, the data reveal that merely 16 out of the 36 states procured fuel from the Nigerian National Petroleum Company Limited during August, thereby precipitating a widespread fuel scarcity.
Subsequent to President Bola Tinubu’s declaration regarding the elimination of the fuel subsidy in May 2023, petrol prices have escalated by approximately 488 per cent, soaring from N175 to exceeding N1,000 by October 2024.
The incessant escalation in prices has exerted immense pressure on the economy, resulting in increased transportation expenses and exacerbating inflationary trends, as beleaguered Nigerians voice their grievances regarding the prevailing hardships. This predicament has also compelled numerous motorists to forgo personal vehicles in favor of utilizing public transportation services.
The national leadership of the Petroleum Products Retail Outlets Owners Association of Nigeria has articulated that the decline in fuel consumption has inflicted substantial financial detriment upon the association, asserting that nearly 10,000 of its members stand on the brink of closure.
In a conversation with Punch, Dr. Joseph Obele, the National Public Relations Officer of PETROAN, noted that the expenditure for a truckload of Premium Motor Spirit (PMS) has surged from N7 million to N47 million over the past 16 months.
“Three days ago, there was a meeting at the national headquarters of PETROAN. At the meeting, there was, an indication that about 10,000 of our members would quit business in the next 45 days because their trading capital had been severely affected,” Obele stated.
