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Petrol consumption jumps by 340 million liters in one month

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 Petrol consumption in Nigeria increased by 340 million liters in a month, according to figures released on 1st August 2021 by the Nigerian National Petroleum Corporation.

According to data from the oil company’s March 2021 financial and operations report, 1.75 billion liters of Premium Motor Spirit was consumed in March 2021 and according to previous report, consumption in February 2021 was 1.41 billion liters. This means that between February and March of this year, the country’s gasoline consumption increased by 340 million liters.

According to the NNPC’s March 2021 report, the total revenue generated from the sale of petroleum products from March 2020 to March 2021 was N2.13tn, with petrol accounting for approximately 99.24% of total sales at a value of N2.11tn.

According to the NNPC, its downstream subsidiary, the Petroleum Products Marketing Company, recorded N234.63bn revenue from the sale of white products in the month of March 2021 alone while the gas sector produced a total of 222.74 billion cubic feet of natural gas. This translates to an average daily production of 7,183.33 million standard cubic feet per day.

An increase in demand/usage of petroleum products AGO/PMS/DPK by the general public would mean that we need to keep up with a large supply available for consumption. With the normal laws of demand and supply in play here, if we were to experience shortage due to inability to keep up with demands, it’s likely to create an upward spike in the prices of AGO/PMS/DPK. But if supply can keep up with demands, then price stability and competition would be the norm.

This Post Has 2 Comments

  1. Dare

    A good development for those in the industry, not so much of a good news for the general public

  2. Daniel Umoh

    Couldn’t agree less

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