The cessation of Nigeria’s fuel subsidy by President Bola Tinubu in May has led to a significant decline in petrol imports from Europe, causing a 48% decrease in demand for Premium Motor Spirit (petrol), according to data from S&P Global Commodities at Sea.

Less importation recorded in July

Petrol imports to Nigeria fell to 106,000 barrels per day in July, down from 205,200 bpd in May. The removal of the subsidy resulted in soaring local petrol prices, prompting the decline in demand.

The report indicated that overall refined product demand also decreased by 41% during the same period.

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The subsidy removal is projected to save Nigeria up to N11 trillion ($2.6 billion) in 2023, providing relief to the government’s growing deficit.

This change in demand has also affected European refiners who relied on the West African market, leading to a drop-off in European exports to the region.