Nigeria records 33.58% reduction in fuel consumption, says NMDPRA boss

THE Chief Executive Officer of Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Farouk Ahmed, yesterday, said that industry deregulation has actually seen a 33.58 per cent reduction in fuel consumption of Nigerians. Ahmed who stated this at the ongoing Oil Trading and Logistics, OTL, Africa Week, 2023, in Lagos, explained: “Our data reveal that after the announcement of deregulation, an average volume of 44.3 million litres per day was evacuated for distribution nationwide which implies a 33.58 per cent reduction from the 66.7 million litres per day before the deregulation. The supply of PMS and other petroleum products have all maintained average land sufficiency levels above required thresholds.”

He added 94 wholesale suppliers were issued permits to import PMS into the country. Eight suppliers delivered eight cargoes of PMS totaling 251,000 metric tons, MT within the period June to September 2023. “This low performance was due to the challenge of forex illiquidity which has constrained the Oil Marketing Companies’ ability to import the product. But we are hopeful that the necessary efforts being taken by government to improve the stability of harmonised forex market will support the importation of PMS by more Oil Marketing Companies alongside NNPCL,” he said.  Speaking on the issue of gas, the NMDPRA boss, assured that the decade of gas programme, DOGP, will ensure the accelerated growth of gas processing, storage, transportation, retail, and utilisation in Nigeria within the decade. The programme, he stated, has optimal industry inclusiveness and is making steady progress in the implementation of all its strategic objectives, initiatives and projects.

He said: “While harnessing our rich gas resource base of over 208 trillion cubic feet, TCF, as being coordinated by the DOGP, gas derivatives are expected to provide cleaner and cheaper alternatives to other white products. One of the most pressing concerns of the moment is the reduction of harmful emissions from petroleum production and utilisation. For our industry to remain viable, we must deploy measures that would protect the environment and promote sustainability.

This is to be achieved through the reduction of emission of carbon, sulfur, and BTEX compounds (benzene, toluene, ethylbenzene, and xylene) amongst others. For carbon, the net-zero target determines our strategies, while for sulfur and others, our Nigerian Industrial Standards, NIS, and the ECOWAS Clean-Fuels roadmap guides our actions.”

Continuing necessary engagements with stakeholders to finalise the revision of domestic base price of natural gas and we shall soon be releasing the revised Gas Transportation Network Code; Guidelines for National Strategic Stock; and; Launch the NMDPRA Industry Sustainability Initiative (NISI,” he added.

Source- Vanguard Newspaper.

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