Oil marketers in Nigerians are concerned over significant losses, with around 10,000 oil dealers about to shut down, as consumption of fuel continues to plummet due to soaring prices.

According to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, fuel consumption has reduced to 4.5 million litres per day in August 2024, down from 60 million litres per day in May 2023—a staggering 92 per cent decline.

The data also show that only 16 out of the 36 states received fuel from the Nigerian National Petroleum Company Limited in August, leading to widespread shortage.

Since President Bola Tinubu announced the removal of fuel subsidy in May 2023, petrol prices have surged by about 488 per cent, rising from N175 to over N1,000 by October 2024.

The continuous price hikes have strained the economy, driving up transport costs and fuelling inflation, as struggling Nigerians lament the hardship. The situation has also forced many motorists to abandon their vehicles, opting instead for public transportation.

The national leadership of the Petroleum Products Retail Outlets Owners Association of Nigeria said the drop in fuel consumption had caused the association huge losses, adding that about 10,000 of its members were on the verge of shutting down.

Speaking with Punch, the PETROAN National Public Relations Officer, Dr Joseph Obele, said the cost of a truckload of PMS had moved from N7m to N47m in the last 16 months.

“Three days ago, there was a meeting at the national headquarters of PETROAN. At the meeting, there was, an indication that about 10,000 of our members would quit business in the next 45 days because their trading capital had been severely affected,” Obele stated.