Nigeria’s daily petrol consumption has dropped to an average of 50 million litres following the removal of fuel subsidies, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The agency, during a press briefing, confirmed that less than 50% of this demand is met by local refineries, with the shortfall being covered through fuel imports.
Fuel Supply and Importation
Speaking on the current supply situation, NMDPRA Executive Director, Distribution, Systems, Storage, and Retailing Infrastructure, Ogugwu Kalo Okoha, stated that the country has remained free from fuel shortages despite the decline in local refining capacity.
- Before the removal of subsidies on May 29, 2023, Nigeria’s daily petrol consumption stood at 66 million litres.
- After the subsidy removal, consumption dropped to 50 million litres per day.
- Less than 50% of petrol supply currently comes from local refineries.
- The shortfall is covered by imports, as no locally owned refinery has imported petrol in 2025.
Okoha assured that the NMDPRA is committed to ensuring sufficient petrol supply across the country. The agency emphasised that if necessary, the government would step in to bridge supply gaps through the supplier of last resort provision under the Petroleum Industry Act (PIA).
Fuel Quality and Standards
Addressing concerns over fuel quality, NMDPRA reaffirmed that all petroleum products, whether imported or locally refined, must meet strict quality standards set by the Standards Organisation of Nigeria (SON) and the Petroleum Industry Act (PIA) 2021.
- All fuel must undergo laboratory testing before distribution.
- Key quality parameters include research octane number (RON), sulphur content, density, and oxygenate levels.
- NMDPRA dismissed misinformation on social media regarding differences in fuel quality based on colour or appearance, stating that visual attributes do not affect performance.
Regulating Fuel Transportation
In a significant safety measure, the Federal Government has banned the use of fuel tankers carrying over 60,000 litres on Nigerian roads starting March 1, 2025.
- By Q4 2025, trucks exceeding 45,000 litres will also be prohibited from transporting fuel.
- The move is aimed at reducing road accidents and ensuring safer fuel distribution across the country.
Looking Ahead
Despite progress in local refining, Nigeria remains dependent on fuel imports to meet demand. The government’s focus on strengthening local refining capacity, enforcing fuel quality standards, and improving transportation safety is expected to stabilise the sector. However, until refineries operate at full capacity, fuel imports will continue to play a key role in Nigeria’s energy landscape.
