Following the elimination of the fuel subsidy by President Bola Tinubu in June, Nigeria saw a significant reduction in its monthly petrol imports, dropping by approximately 1 billion litres, according to a report from the National Bureau of Statistics (NBS).
The NBS data revealed a fluctuating pattern in the country’s fuel importation, with 2.09 billion litres received in January 2023, followed by a slight decrease to 1.99 billion litres in February, and varying amounts in the subsequent months.
However, a notable decline in imports was observed after the subsidy removal on May 29, with June’s imports falling to 1.64 billion litres.
This downward trend continued into July and August, with imports dropping to 1.45 billion and 1.09 billion litres, respectively.
This represents a significant year-on-year reduction from August 2022, when 2.23 billion litres were imported.
It’s important to note that Nigeria has not produced any Premium Motor Spirit (PMS) locally in the past few years, as outlined in the NBS report, due to the non-operational state of its oil refineries.
Conversely, the production of diesel and kerosene continued, with kerosene production increasing slightly in the first half of 2023 compared to the same period in 2022, and diesel production also seeing a rise.
Despite the overall increase in PMS imports in the first half of 2023 compared to the same period in 2022, the significant reductions in June, July, and August highlight the impact of the subsidy removal.
Currently, the Nigerian National Petroleum Company (NNPC) remains the sole importer of fuel into the country, emphasizing the government’s efforts to manage the nation’s fuel supply more efficiently.