Fuel Consumption Now 67.66m litres/day, Subsidy Gulps N10.1bn
The average daily consumption of petrol has hit 67.66 million litres, indicating an increase of 33.89 million litres when compared to daily consumption figures recorded in September 2019.
According to the Petroleum Products Pricing Regulatory Agency, latest weekly data covering November 28, 2019 to December 4, 2019, showed that an average of 67.76 million litres of Petrol was discharged daily.
It stated on Monday that subsidy on petrol during the period was N21.22 per litre, which implied that the Nigerian National Petroleum Corporation incurred N10.1bn as subsidy during the seven-day period.
Findings showed that the latest daily petrol consumption figure of 67.66 million litres was 33.89 million litres higher than the average daily consumption recorded in September 2019.
Figures obtained from the NNPC on Monday showed that a total 1.01 billion litres of petrol translating to 33.77 million litres/day were supplied for the month of September in the downstream sector.
Providing further explanation on the pricing of petrol during the one-week period, the Executive Secretary, PPPRA, Abdulkadir Saidu, said the cost of the commodity at the international market averaged $582.80 per metric tonne.
According to him, the landing cost and Expected Open Market Price for petrol averaged N146.85/litre and N166.22/litre respectively for the NNPC imports only.
He was, however, quick to state that due to the cost of financing component built into other marketers’ imports, the landing cost and the EOMP petrol price averaged N149.86/litre and N169.23/litre respectively.
In the weekly data covering November 28, 2019 to December 4, 2019, the PPPRA stated that the Central Bank of Nigeria official exchange rate averaged N306.97 per dollar, while the parallel market rate was stable and averaged N360 to one dollar.
It also noted that the reference freight rate from North-West Europe to West African Frontier averaged $30.87 per metric tonne, adding that the rate decreased when compared to previous week’s average of $35.45 per metric tonne.
The petroleum pricing regulator further stated that the total petrol receipt from November 28 to December 4 was 473,602 million litres.
It stated that during the period, the receipt for diesel was 68,366 million, while that of Aviation Turbine Kerosene was 20,327 million litres.
“The average daily discharges of PMS for the week stood at 67.66 million litres,” the agency stated.
The data indicated that the national truck-out volume of petrol for the week was 409.22 million litres, the AGO, 115.97 million litres and the ATK, 27.05 million litres. Household kerosene recorded zero.
The average daily truck-out volume of the PMS for the week from various depots for supply to retail outlets was 58.46 million litres.
The PPPRA stated that the average-day sufficiency for the PMS and the AGO during the week under review were 47.25 and 41.29 days respectively.
Operators observed that the increase in petrol consumption would lead to an increase in petrol subsidy, as the NNPC would spend more, being the sole importer of PMS into Nigeria.
Economic Confidential had reported that the Federal Government would spend about N750.81bn on petrol subsidy in 2020, based on data obtained from the PPPRA.
