“Nigerian Fuel Marketers on Brink of Closure as Consumption Drops 92% Due to Soaring Prices”

Oil marketers in Nigeria are facing a dire situation as a significant drop in fuel consumption threatens their operations, with around 10,000 retail outlets potentially shutting down. According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), fuel consumption plummeted from 60 million liters per day in May 2023 to just 4.5 million liters per day in August 2024, marking a staggering 92% decline.

This crisis follows President Bola Tinubu’s decision to remove fuel subsidies in May 2023, which triggered a dramatic 488% increase in petrol prices, skyrocketing from N175 to over N1,000 per liter by October 2024. The increase in prices has resulted in higher transport costs and intensified inflation, prompting many Nigerians to switch from personal vehicles to public transportation.

Dr. Joseph Obele, the National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), confirmed the significant financial strain on retailers, noting that the price of a truckload of petrol has surged from N7 million to N47 million over the past 16 months. He warned that nearly 10,000 members might cease operations within 45 days due to a lack of trading capital, highlighting the urgent need for solutions to address the industry’s challenges.