Daily consumption of PMS rises to 79.8 million litres as subsidy hits over ₦480 billion monthly

The Nigerian National Petroleum Company Limited, NNPCL’s latest report has revealed that the daily fuel consumption in Nigeria has risen to 79.83 million litres daily, with subsidy on the product hitting an estimated ₦484 billion monthly.

The daily consumption record of PMS has, however, been a subject of controversy as different figures have been recorded on several occasions which raises doubt about the actual daily usage of the commodity by Nigerians.

In September 2022, the Nigeria Customs Service (NCS) faulted claims by the NNPCL Limited that Nigerians consume “60 million litres of petrol daily”.

The NNPCL’s weekly PMS evacuation/dispatch data which covers from March 4 – 10, 2023 which is a period of 7 days, indicates that a total of 558.83 million litres of petrol was evacuated during the period, meaning that the average daily consumption of the product was 79.83 million litres.

While speaking further on the subsidy paid on products, the Group Chief Executive, NNPCL, Mele Kyari, revealed that about 66 million litres of petrol was pumped daily, and about N202 was spent on every litre of PMS consumed across the country.

“Today, by law and the provisions of the Appropriation Act, there is a subsidy on the supply of petroleum products, particularly PMS imports into our country. In current data terms, three days ago, the landing cost was around N315/litre.

“Our customers are here; we are transferring to each of them at N113/litre. That means there is a difference of close to N202 for every litre of PMS we import into this country. In computation, N202 multiplied by 66.5 million litres, multiplied by 30 will give you over N400bn of subsidy every month,” Kyari stated.

While the subsidy increases monthly, the NNPCL has been terribly hit being the sole importer of the product. Other petroleum marketers have been forced to stop importing the product due to the difficulty in accessing foreign exchange thus depending wholly on the NNPCL.