Marketers demand monitoring of PMS distribution

Available data has shown that average daily petrol consumption in Nigeria has fallen by 28 per cent since President Bola Tinubu scrapped subsidy on the fuel at the end of May.

Average daily petrol consumption fell to 48.43 million litres in June, down from the previous average of 66.9 million, according to figures released to Reuters by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

This information was further confirmed by the development the President of Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) , Billy Gillis-Harry.

He said that marketers have recorded downward retail sales perhaps because of hike in pump price.

The PETROAN President however advised Government to further authenticate its data using a new tool developed by the Association.

According to him, his Association has developed a framework that could support government transparently and effortlessly collate adequate consumption data on petroleum consumption in the country.

Gillis-Harry, said that PETROAN has developed the Petroleum Products Passport, PPP, a tool that can be perfectly deployed by the industry to transparently monitor products supply and distribution across the country.

While, commending the present administration for mustering the political will to exit the petrol subsidy regime the PETROAN president called for sustainable efforts to fix the nation’s refineries.

The subsidy regime had kept prices cheap for decades but it became increasingly expensive for the country.

Nigeria reportedly spent $10 billion last year on subsidy-leading to wider deficits and driving up government debt.

Since the subsidy was ended a black market  in neighbouring Cameroon, Benin and Togo that relied on petrol smuggled from Nigeria has collapsed.

Despite having spent $2.41 billion on the subsidy in the first five months, Nigeria could save up to $5.10 billion this year from scrapping the petrol subsidy and from FX reforms, the World Bank said on June 27.

Also, reports have indicatedd that the Independent Petroleum Marketers Association of Nigeria, IPMAN, has inched further with its projected mass rollout of Compressed Natural Gas, CNG, refilling outlets across the country with seven banks ready to manage revolving fund facility from the African Development Bank, AfDB.

According to reports, the IPMAN had sealed the deal with the bank following removal of petrol subsidy.

National President of IPMAN, Elder Chinedu Okoronkwo was quoted as confirming the development.

The Association is said to have made the approach after it conducted a market survey on the cost of converting existing petrol stations to CNG outlets

IPMAN has already commenced identification of members interested in co-locating CNG dispensers and infrastructure on their existing petrol retail outlets.

The exercise is to identify qualified potential candidates for loans to support its target of establishing 10-20 colocated CNG stations in each state of the federation during the first phase of its planned nationwide rollout.