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Fuel consumption has fallen in Nigeria since the subsidies were removed. President Bola Tinubu removed costly subsidies, the first step he had taken after assuming office. The report about the fall in fuel consumption is based on data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority recently
Fuel consumption has fallen in Nigeria since the subsidies were removed. President Bola Tinubu removed costly subsidies, the first step he had taken after assuming office. The report about the fall in fuel consumption is based on data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority recently.
The average daily petrol consumption reportedly reached 48.43 million liters in June, down from the previous average of 66.9 million. The end of subsidies has caused fuel prices to nearly triple, leading to a rise in transport costs and higher food and electricity prices for many Nigerians using petrol generators. Analysts expect that this might affect businesses.
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There has been a marginal decrease in the business confidence index in June 2023 compiled by Stanbic IBTC’s latest Purchasing Power Index as inflationary pressures surged. The withdrawal of fuel subsidies acted to limit the pace of output growth. People were illegally trading Nigeria’s cheap gasoline by taking it to neighboring countries like Benin and Cameroon. For decades, Nigeria’s low-cost gasoline has been transported illegally by road to its neighbors, primarily Benin, where it is resold on the black market by a multitude of informal sellers. In Cameroon, another neighbour of Nigeria, several motorcycle taxi unions have gone on strike in protest since they found it difficult to ply their vehicles.
