Oil marketers in Nigeria are facing a crisis as fuel consumption plummets due to skyrocketing prices, with around 10,000 retail outlets at risk of closure. Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that fuel consumption fell from 60 million liters per day in May 2023 to just 4.5 million liters per day in August 2024, a 92% decrease. This decline follows President Bola Tinubu’s removal of fuel subsidies in May 2023, which resulted in a 488% increase in petrol prices, soaring from N175 to over N1,000.
The repercussions of this price surge are severe: transport costs have risen, inflation has intensified, and many Nigerians have shifted from personal vehicles to public transport. Dr. Joseph Obele, National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), indicated that these financial pressures could lead to significant closures, as the cost of a truckload of petrol has skyrocketed from N7 million to N47 million in just 16 months. Obele stated that a recent national meeting estimated that nearly 10,000 members could stop operations within 45 days due to depleted trading capital.
“Nigerian Oil Marketers Face Shutdown as Fuel Consumption Plummets 92% Amid Skyrocketing Prices”
