Fuel consumption has plummet across the nation amid skyrocketing pump price, creating a lull in business and the possibility of over a million fuel stations across the country, being at the brink of closing stations.
With oil marketers voicing alarm over severe losses, no less thanly 10,000 oil dealers are already facing imminent closure.
There are indications that many Nigerians will soon tip the Compress Natural Gas (CNG) for the Premium Motor Spirit (PMS), as the popularity of latter begins to wane drastically, ostensibly, due to lingering harrowing task of sourcing fuel by marketers.
The present administration of President Bola Ahmed Tinubu has embraced the use of CNG as lee-way to cushion the effect of fuel subsidy in Nigeria, as announced by government on May 29, 2023.
In August 2023, the Federal Government had set up the Presidential Compressed Natural Gas Initiative (PCNGI), headed by Michael Oluwagbemi, to give vent to the use of CNG in Nigeria, by setting up conversion centers for non-compliant vehicles while boosting adoption of gas among motorists
According to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, fuel consumption plummeted to 4.5 million litres per day in August 2024, a staggering decrease from 60 million litres per day in May 2023
The situation represents a dramatic 92 percent drop, suggesting a sharp downward slope in demand in the wake of the rising demand for the CNG.
The data further reveals that only 16 out of 36 states received fuel from the Nigerian National Petroleum Company Limited in August, resulting in widespread shortage
Since President Bola Tinubu announced the removal of the fuel subsidy in May 2023, petrol prices have skyrocketed by approximately 488 percent, climbing from N175 to over N1,000.
These relentless price increases have placed immense strain on the economy, hiking transport costs and exacerbating inflation, as struggling Nigerians voice their frustrations over the escalating hardships.
The situation has compelled many motorists to forsake their vehicles in favor of public transportation.