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By Adewale Sanyaolu
The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), has said Nigeria’s daily Premium Motor Spirit (PMS) consumption also known as petrol, will hit about 50 million litres by the fourth quarter of 2024.
Authority Chief Executive and Chief Executive Officer (CEO) of NMDPRA, Mr. Farouk Ahmed, stated this on the sidelines of the OTL Africa Downstream Energy Week which began in Lagos yesterday with the theme;”Alliances for Growth.”
Farouk disclosed that with the yuletide approaching, demand for petrol in the fourth quarter of the year (October 1-December 31), are usually on the rise due to interstate and intrastate movements often associated with the festivities.
He said currently, consumption for petrol is within the region of 45 million litres per day, as a result of the full liberalisation of the downstream petroleum industry which has discouraged cross-border smuggling because there isn’t incentive for such anymore.
He added that as the yuletide winds down, the country can now begin to see the actual numbers between demand and supply because the product would now be in-country.
On the weekly price movements of petrol, Farouk said this is expected in a deregulated market as prices begin to find their levels, saying the role of the regulator would now be that of a referee watching the market players and ensuring they play by the rules as enshrined in the Petroleum Industry Act (PIA). Besides, he said prices of the two major products in the global oil market; crude oil and gas has been very volatile lately, due to the hostilities in Middle East, especially between Isreal and Iran.
“The threat that Isreal may attack some oil fields in Iran has created tension in the market, thereby driving up prices. But thankfully, this has not happened,” he said.
On industry alliances for growth, the NMDPRA boss said one of the roles of his agency is to facilitate collaboration for greater opportunities.
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He explained that operators could collaborate to share facilities such as storage, trucking among others to enhance efficiency and reduce cost as against the usual practice of each operator trying to build individual infrastructure.
He added that one of areas that could promote efficiency and transparency is a situation where there could be a one-stop shop for agencies which included; NMDPRA, NUPRC, NPA and NIMASA will go a long way in being of benefit to operators.
He frowned at a situation where there are a lot of idle assets and infrastructure which is of no good to the industry, saying there are a couple of idle filling stations that are not in use but could be put to efficient use if there was a strong industry collaboration.
Earlier in his remarks, Governor of Lagos State, Mr. Babajide Sanwo-Olu, called for stronger alliances with the private sector, young entrepreneurs, and both local and international stakeholders to unlock the potential of sustainable energy solutions across Lagos and beyond.
The Governor, who was represented by Mr. Biodun Ogunleye, Lagos State Commissioner for Energy and Mineral Resources, emphasised the importance of partnerships in driving innovation and building resilient energy infrastructure. “Together, our collective efforts will foster the kind of innovation needed to transform energy systems in Lagos, Nigeria, and across Africa,” Sanwo-Olu stated.
He urged stakeholders to prioritise collaboration over competition, sustainability over short-term gains, and resilience over complacency.
The Governor highlighted Lagos State’s proactive role in advancing energy accessibility and sustainability.
“Our administration has tirelessly supported energy initiatives that promote accessible, affordable, and sustainable power,” he said.
