According to the Federal Government, the volume of Premium Motor Spirit (PMS), commonly known as petrol, consumed in Nigeria during the first half of 2023 amounted to 11.26 billion litres.

However, after the subsidy on petrol was removed following President Bola Tinubu’s announcement on May 29, 2023, PMS consumption witnessed an average daily reduction of approximately 18.5 million litres in June.

Data obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority revealed that from January 1 to May 28, 2023, before the deregulation period, the total petrol consumption nationwide was around 9.9 billion litres, with an average daily consumption of 66.9 million litres.

In contrast, between June 1 and June 28, 2023, after deregulation, total petrol consumption was 1.36 billion litres, with an average daily consumption of 48.43 million litres.

These figures indicate an approximate decrease of 18.5 million litres in daily petrol consumption after the subsidy removal.

While some days witnessed petrol consumption exceeding 100 million litres, there were also days when it dropped below 10 million litres.

The removal of fuel subsidies, although having harsh impacts, was considered a necessary step to address issues such as smuggling and other unfavorable practices associated with the subsidy regime.