The Nigerian government has stated that petrol imports have dropped by 3.58 billion liters since the removal of fuel subsidies in May 2023. This represents a 13.77% decrease from the 23.54 billion liters imported in 2022.The National Bureau of Statistics (NBS) disclosed this information in its latest petroleum products distribution statistics released on Tuesday. The agency noted that petrol imports in the second half of 2023 (H2) were significantly lower than in the first half (H1), with a 29.99% reduction.
Petrol Imports Falls By 3.58 Bn Litres After Removal Of subsidy– FG
The government’s removal of fuel subsidies has led to a significant increase in the price of petrol in Nigeria. However, it has also resulted in a reduction in petrol imports, as consumers have become more conscious of their fuel consumption.The reduction in petrol imports is expected to have a positive impact on Nigeria’s foreign exchange reserves. It is also expected to lead to a reduction in the government’s expenditure on fuel subsidies.However, the increase in the price of petrol has also had a negative impact on the Nigerian economy.
It has led to an increase in the cost of living for Nigerians and has also affected businesses.The Nigerian government is now working to find ways to mitigate the negative impact of the increase in the price of petrol. This includes providing targeted support to vulnerable Nigerians and promoting the use of alternative fuels.
The National Bureau of Statistics (NBS) has stated that the total volume of petrol (Premium Motor Spirit, PMS) trucked out in Nigeria in 2023 was 20.22 billion liters, representing a 16.96% decrease compared to the 24.35 billion liters recorded in 2022.
In terms of imported petrol, the country imported 20.30 billion liters in 2023, which is a 13.77% decrease from the 23.54 billion liters imported in 2022. This downward trend is particularly noticeable when comparing the second half of 2023 (H2 2023) to the second half of 2022 (H2 2022). Petrol imports in H2 2023 dropped to 8.36 billion liters, a significant decrease of 30.22% or 3.62 billion liters compared to H2 2022, which stood at 11.98 billion liters.
The National Bureau of Statistics (NBS) has released data on the monthly volume of petrol imports into Nigeria in 2023. The figures show a clear decline in imports following the removal of fuel subsidies in May 2023.
In January 2023, 2.09 billion liters of petrol were imported, followed by 1.99 billion in February, 2.29 billion in March, 1.91 billion in April, and 2.01 billion in May. After the subsidy removal in May, imports dropped significantly to 1.64 billion liters in June, 1.45 billion in July, 1.09 billion in August, 1.21 billion in September, 1.16 billion in October, 1.55 billion in November, and 1.88 billion in December.
The NBS also reported that the import of Automotive Gas Oil (AGO) increased to 4.94 billion liters in 2023 from 4 billion liters in 2022. Domestic production of AGO rose to 109.39 million liters in 2023 from 102.47 million liters in 2022, representing a 6.76% increase.Household Kerosene production also saw a significant increase, rising to 69.71 million liters in 2023 from 44.68 million liters in 2022, a growth rate of 56.02%.
The National Bureau of Statistics (NBS) has stated that the import of Automotive Gas Oil (AGO) into Nigeria increased to 4.94 billion liters in 2023 from 4 billion liters in 2022. This represents a 23.66% increase in AGO imports.
The National Bureau of Statistics (NBS) has stated that Nigeria’s spending on fuel imports decreased by approximately 2.6% from N7.7 trillion in 2022 to N7.5 trillion in 2023. This follows President Bola Tinubu’s announcement of the complete removal of fuel subsidies upon assuming office on May 29, 2023, which led to a significant increase in fuel prices across the country.
In terms of semi-annual comparisons, fuel importation costs in the second half of 2023 (H2 2023) decreased by 10.26% to N3.5 trillion compared to the N3.9 trillion recorded in the first half (H1 2023). However, in the first six months of 2024 (H1 2024), the country’s petrol import bill increased by a significant 87.09% to N5.8 trillion compared to the N3.1 trillion spent in the same period of 2023.
The significant increase in petrol imports into Nigeria can be attributed to a combination of high crude oil prices and a weakened naira. The Minister of Information, Idris Mohammed, has stated that domestic consumption has dropped by 50% from two billion liters following the removal of fuel subsidies, suggesting that imports are being redirected to other destinations.
The decision to remove fuel subsidies has sparked significant controversy. While the government argues that it was necessary to allocate resources to essential sectors, economists contend that it unfairly impacts lower-income Nigerians. The sharp increase in living costs due to rising fuel prices has been a major concern for many.
There is also ongoing debate about whether the subsidy has truly been abolished, as reports indicate that the Nigerian National Petroleum Company Limited (NNPC) may still be incurring costs related to fuel imports. The situation escalated when it was revealed that the NNPC sought financial assistance from the federal government for fuel import costs, despite the subsidy removal.
The revelation that the Nigerian National Petroleum Company Limited (NNPC) sought financial assistance from the federal government for fuel import costs, despite the subsidy removal, has raised significant doubts about the transparency of the government’s subsidy policy and the effectiveness of its implementation. This has led to questions about whether the subsidy has truly been abolished and whether the government is being truthful about its intentions.
