Nigerians ration fuel consumption to cope with high price

By Tumininu Ojelabi Hassan

Nigerians are adopting new measure in their fuel consumption habit to cope with the high price that came with the administration.

Consequently, the consumption of Premium Motor Spirit (PMS), also known as Petrol reduced by an average of 18.5 million litres (28%) daily in June 2023. This was observed after the removal of fuel subsidy following the announcement by President Bola Tinubu on May 29th, 2023.

Data obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, indicated that between January 1 and May 28, 2023, which was the pre-deregulation period, the total amount of petrol consumed nationwide was about 9.9 billion litres. The average daily consumption before deregulation was put at 66.9 million litres of petrol during this period when subsidy on petrol was still in place.

However, figures from the Federal Government agency indicated that between June 1 to June 28, 2023, which was the post-deregulation period, the total petrol consumption across the country was 1.36 billion litres, while the average daily consumption was put at 48.43 million litres.

An analysis of the data by our correspondent through interactive sessions with motorists, fuel attendants and other individuals revealed the accuracy in the monthly consumption figures.

Adewale Omooba, a Team Leader at Total Energies, Ikosi Road admitted to the reduction in fuel consumption and the low demand of petrol since the removal of fuel subsidy.

“The demand of petrol has reduced because of the situation in the country, there’s no flamboyant lifestyle anymore. Before, each member of a particular family can go out with one car. The father will drive one, the mother will drive one, the grown up son/daughter will drive one. Due to the present circumstance, the family has resorted to going out with just one car, then the father can take the mother and son to their respective destinations.

“Prior to the removal of fuel subsidy, with N3000 fuel, I would drive to the Island to and fro but that’s impossible now because N3000 fuel is just six litres. The demand has dropped. Also, it has affected the supply because we supply fuel based on the demand. In a day, we used to sell about 33,000 litres of petrol, which is the capacity of a tanker truck, but nowadays we sell the same quantity of petrol for two days,” he stated.

He stated other factors contributing to the decline in fuel consumption in the country.

“Another factor diminishing the consumption of fuel is constant electricity. If there’s no constant power supply, people will be forced to buy fuel, at least, to charge their phones because they don’t have a choice. We sell petrol at N492 per litre, diesel at N660 per litre.

“When we receive supplies from our suppliers, we have a hydraulic system we use in verifying the authenticity of the petrol and diesel before selling to our customers. Since the hike in fuel price, the management has developed mechanisms of coping with the recent development. We were advised to encourage our customers and ensure we offer excellent customer service to them because people are angry due to the increase in fuel price,” he added.

Akinwale Mustapha, a tricycle rider plying Ketu to Magodo route shared the effects of fuel subsidy removal on his business

“The removal of fuel subsidy is really affecting transport business, especially for we that are driving keke napep. The amount we spend on the fuel we consume daily is triple the amount we used to spend before the removal. If it was double the amount, it would have been bearable. Also, we don’t have passengers like before, they prefer to trek to their destination nowadays.

“Most of them don’t go out like before. Two weeks ago, I discussed with a passenger, I asked him why 9-5 workers aren’t going out like before. He told me some of them work remotely now while some people’s work mode is hybrid. Due to this, we don’t make money like we used to. Before, I used to buy about N3500 fuel to work through out the day, at most N4000 but now I buy about N8000 fuel daily in order to work through out the day,” he explained.

Akinwale spoke on the role of the National Union of Road Transport Workers (NURTW) to allay the burden on its members, “We haven’t felt the contribution of NURTW towards improving the current situation. That’s for now but I don’t know what will happen tomorrow. We are on our own. Most of us are still doing this business because we don’t have another means of income, at least, it’s better than doing nothing,” he added.

Jaiyeoba Moses, a public bus driver plying the Iju Ishaga to Ketu route on a daily basis shared his ordeal as a result of the fuel price hike.

“This business is not profitable any longer. We spend all the money we make on fuel. I used to spend N2000 on fuel to and fro but now I buy about N5000 fuel. We ply this route just twice in a day, which means I spend N10000 on fuel daily. We are striving to survive in this business, because it’s better than sitting at home idle. We don’t have passengers like before, people don’t go out unless for important purposes. These days, most people send things through us as a message to the recipient instead of going themselves,” he said.

The case is similar for Alex Ije, a ride-hailing driver, who said these days, he could be in a popular location for over two hours without getting a request unlike before where he would have gotten about two or three requests.

“The removal of fuel subsidy is taking a toll on our business. A few days ago, I was at Ikeja for over two hours and I didn’t get a single request. It’s that bad. Currently, I spend double the amount I used to spend on fuel depending on the requests for the day. I don’t even accept requests to Ikorodu now because after consuming so much fuel on a trip, when coming back you won’t get a request.

“This is waste of fuel and money. That’s why most of us don’t go there for now. Initially, I thought I was the only one experiencing this, until I noticed that other drivers started complaining on the platform, that was when I realised it was a general issue,” he complained.

While interacting with our correspondent, Gloria Aneke, a digital marketer, said her employers adopted the hybrid work mode to relieve the employees of fuel price hassle. “Since the increment of fuel price, we go to the office only on Tuesdays and Wednesdays. This has helped me save a lot because I hardly use my car these days. When I need to go to the office, I will just board a BRT bus to CMS. I drive my car out only when it’s extremely important and when the outing involves my children,” she stated.

Sunday Akpan, a businessman based in Ejigbo area of Lagos state attributed the reduction of fuel consumption to the price hike coupled with the economic downturn.

“The price of fuel is enough to scare people away. Before, I used to run my generator overnight. These days, I turn on my generator at 8pm, I put it off at 12am. Within this period, we would have charged our phones and done the necessary things. Thankfully, it’s the rainy season so there is no heat. In my house, nobody uses their generator overnight anymore and there are six apartments in the building. Everyone is trying to manage the situation,” he revealed.