According to the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), 45 million to 50 million gallons of fuel are now consumed daily in the nation.

Speaking on the fringes of the 18th Africa Downstream Energy Week, which is now taking place in Lagos, Mr Farouk Ahmed, the CEO of NMDPRA, revealed this.

The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) estimates that the country now uses between 45 and 50 million gallons of petroleum per day.

Mr Farouk Ahmed, the CEO of NMDPRA, made this revelation while speaking on the sidelines of the 18th Africa Downstream Energy Week, which is now happening in Lagos.

According to Ahmed, increased industrial and consumer activity during the fourth quarter was the usual reason for the greater petrol use, particularly in the run-up to the holidays.

In order to keep more petrol in Nigeria, he said, recent pricing changes and market liberalisation should lessen cross-border smuggling.

“We anticipate that this price change or liberalisation will deter cross-border smuggling of the product, resulting in more petrol remaining domestically,” he stated.

According to him, Nigerians’ real fuel usage may decline, but it is unlikely to do so dramatically.

In his discussion on the conference’s subject, Ahmed stressed the value of industrial partnerships for cost and efficiency reduction.

According to him, fewer shared facilities would be more effective than many unused private depots, which would be advantageous to both customers and enterprises.

“Stakeholder alliances or collaborations will result in increased efficiency and reduced costs for consumers,” Ahmed stated.

Ahmed claims that although NMDPRA has no intention of enforcing mergers, industry participants are urged to think about forming alliances, particularly in crowded areas, in order to increase productivity and reduce prices for customers.

Ahmed asserts that while NMDPRA has no plans to enforce mergers, industry players are encouraged to consider partnering, especially in densely populated regions, to boost efficiency and lower costs for consumers.