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Nigeria: After subsidy removal, petrol imports fell by 3.58bn litres— Govt

Published

2 days ago

October 2, 2024

According to the National Bureau of Statistics, Nigeria’s petrol imports decreased after President Bola Tinubu eliminated the petrol subsidy in May 2023.

The report also stated that the total amount of petroleum imported fell by 13.77% year over year to 20.30 billion litres in 2023 from 23.54 billion litres in 2022.

The most recent figures on the agency’s distribution of petroleum products, which were made public on Tuesday, revealed this. The data showed that, in comparison to the first half of the year, petrol imports decreased by 3.58 billion litres in the second half of 2023.

According to the report, in the second half of 2023 (H2), the nation imported 8.36 billion litres of Premium Motor Spirit (petrol), a notable drop from the 11.94 billion litres imported in the first half of 2023 (29.99%).

It said, “In 2023, PMS truck out stood at 20.22 billion litres, indicating a 16.96 per cent decrease relative to 24.35 billion litres recorded in 2022.

“In terms of imported products, 20.30 billion litres of Premium Motor Spirit were imported in 2023 relative to 23.54 billion litres in 2022, showing a decrease of 13.77 per cent. This downward trend is even more notable when compared to H2 2022.

“In the latter half of 2022, petrol imports stood at 11.98 billion litres, resulting in a 30.22 per cent drop compared to H2 2023, equivalent to a reduction of 3.62 billion litres.”

The petrol imports for each month in 2023 were broken down as follows: 2.09 billion in January, 1.99 billion in February, 2.29 billion in March, 1.91 billion in April, and 2.01 billion in May.

June saw 1.64 billion, July 1.45 billion, August 1.09 billion, September 1.21 billion, October 1.16 billion, November 1.55 billion, and December 1.88 billion.

These numbers demonstrate how the amount of petrol brought into the nation has changed as a result of the elimination of subsidies.

In a similar vein, the agency reported that the amount of diesel, also known as automotive petrol oil, imported into Nigeria increased from four billion litres in 2022 to 4.94 billion litres in 2023.

Additionally, according to the data, local production of AGO increased to 109.39 million litres in 2023 from 102.47 million litres in 2022, a 6.76% increase.

“About 69.71 million litres of Household Kerosene were locally produced in 2023 compared to 44.68 million litres in 2022, indicating a growth rate of 56.02 per cent over the period.

“For Automotive Gas Oil, 109.39 million litres were locally produced in 2023, when compared to 102.47 million litres reported in 2022. This represents a 6.76 per cent growth rate.

“Also, 4.94 billion litres of Automotive Gas Oil were imported in 2023, indicating an increase of 23.66 per cent compared to four billion litres in the previous year,” It added.

Meanwhile, there are concerns that the NNPCL may still be paying for fuel imports after applying for financial aid from the federal government to cover the cost of petroleum imports even after the subsidies were eliminated, raising questions about whether the subsidy has been eliminated.

Related Topics:Featured Nigeria Petrol subsidy

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TotalEnergies CEO to meet Mozambique president for further project discourse

Published

20 hours ago

October 3, 2024

Ifeoluwa Dada

To discuss the company’s proposed LNG project in Mozambique with the nation’s new president, CEO Patrick Pouyanne has announced he will travel to Mozambique later this month.

“The project remains profitable, we remain committed,” Pouyanne said at an investor presentation.

The $20 billion Mozambique LNG project has been delayed because of worries about violent upheaval in the area, although Pouyanne claimed there had been “progress on security” recently.

On October 9, Mozambicans will cast their votes in presidential and legislative elections that will almost certainly prolong the fifty-year rule of the ruling Frelimo party, which is fighting a protracted Islamist insurgency in one of the largest gas reserves in Africa.

Pouyanne went on to say that lenders had affirmed between 70% and 80% of a $14 billion finance package that supports the project.

“We are waiting on the green light on financing from three credit agencies, some are in Western countries where rules on gas have changed … as soon as that is in place we will move,” Pouyanne said.

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Tanzania’s central bank maintains 6% lending rate

Published

20 hours ago

October 3, 2024

Ifeoluwa Dada

Tanzania’s central bank announced on Thursday that it had left its benchmark interest rate at 6% unchanged.

The benchmark rate was maintained by the central bank at 6% in the two quarters leading up to September, up from 5.5% when the rate was first published in January.

Agriculture, construction, and manufacturing led real GDP growth to 5.3% in 2023, up from 4.7% in 2022. Private investments drove demand.

Tight monetary policy and food and energy price moderation reduced inflation from 4.3% in 2022 to 3.8% in 2023. Due to foreign cash shortages, the Tanzanian shilling fell 8% in 2023.

Despite mounting pressure on the shilling, consumer inflation has remained comfortably below the bank’s objective of 5%. August saw a rise in inflation from 3.0% year over year to 3.1%, according to information from the statistics office.

In recent weeks, many African countries announced monetary policy decisions. Nigeria raised its benchmark interest rate by an additional 50 basis points, to a new record high of 27.25%, Ghana reduced its benchmark monetary policy rate by 200 points to 27% at a normal meeting. while South Africa decreased its benchmark interest rate by 25 basis points to 8% after holding seven consecutive meetings at a 15-year high of 8.25%.