As fuel consumption dips nationwide due to high prices, oil marketers have expressed worry over massive losses, and about 10,000 oil dealers are about to close their shops.

Information from the Nigeran Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that fuel consumption declined to 4.5 million litres daily in August 2024 from 60 million litres in May last year, representing a 92% drop.

The NMDPRA data also shows that only 16 out of the 36 states in Nigeria get petrol from the Nigerian National Petroleum Company Limited (NNPC), leading to shortages.

Recall that President Bola Tinubu removed the fuel subsidy in May 2023, leading to a 488% surge in petrol prices.

The commodity’s price soared from N175 per litre to over N1,000 as of October 2024. The ongoing price hikes in petroleum products have affected the Nigerian economy, leading to high transport fares and a 32.70% inflation rate, which has caused hardship for Nigerians.

The leadership of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) disclosed that the decline in petrol consumption caused the association members huge losses, saying that about 10,000 of them were close to shutting down.

Punch reports that PETROAN national public relations officer Joseph Obele said that the cost of a tuck of PMS rose from N7 million to N47 million in 16 months According to the report, Obele claimed that the marketers had about one million staff who were about to lose their jobs.

Abubakar Maigandi, president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), also confirmed that fuel consumption has dipped, saying IPMAN members were also affected.

The leadership of Petroleum and Natural Gas Workers (NUPENG) said marketers' inability to purchase products has led to job losses for truck drivers and filling station workers nationwide.

Obele said the hike in fuel price had also blocked the cross-border racketeering of the product.

The development comes as the Dangote Petroleum Refinery recorded its first sea petrol dispatch, approximately 500,000 barrels.

The refinery in Ibeju Lekki, Lagos, recorded the milestone one month after it began using trucks to supply petrol.

Bloomberg reports that the petrol was shipped through the Sabaek this week.

Dangote Refinery is crucial in helping Nigeria reduce its reliance on petrol imports from Europe.

ThisDay reports that the heart of Dangote refinery operations is the Residue Fluid Catalytic Cracker (RFCC) unit—a critical component for converting crude into high-value fuels such as gasoline—which continues to increase output.

Once fully operational, the $20 billion, 650,000 barrel-per-day refinery facility is expected to redefine Nigeria’s fuel landscape.