Subsidy removal pulls down PMS import by 13.77% in 2023

The volume of Premium Motor Spirit (PMS) imported into Nigeria in 2023 dropped to 20.30 billion litres relative to 23.54 billion litres in 2022, showing a decrease of 13.77 per cent. During the same period, PMS truck out stood at 20.22 billion litres, indicating a 16.96 per cent decrease relative to 24.35 billion litres recorded in 2022.

This drop is not unconnected with the removal of fuel subsidy by the present administration of President Bola Tinubu.

The removal forced fuel prices to soar across Nigeria, with some stations selling PMS at prices as high as N700 per litre.

The National Bureau of Statistics (NBS), in its Petroleum Products Distribution Statistics Full Year 2023 report released yesterday, also informed that 69.71 million litres of Household Kerosene (HHK) were locally produced in 2023 compared to 44.68 million litres in 2022, indicating a growth rate of 56. 02 per cent over the period.

The report says Nigeria’s fuel import costs decreased by approximately 2.6 per cent, from N7.7 trillion in 2022 to N7.5 trillion in 2023. In terms of semi-annual comparison, the country incurred N3.5 trillion in fuel importation costs in the second half of 2023, representing a 10.26 per cent decrease compared to the N3.9 trillion recorded in the first half of the year.

However, in the first six months of 2024, the country’s petrol import bill stood at N5.8 trillion. When compared to the same period of 2023, the country’s petrol import bill increased by 87.09 per cent from N3.1 trillion. The significant increase in petrol imports can be attributed to high crude oil prices in addition to to the high exchange rates.

For Automotive Gas Oil (AGO), the report shows that 109.39 million litres were locally produced in 2023, higher, compared to 102.47 million litres reported in 2022. This indicates a 6.76 per cent growth rate. For imported AGO, the report shows that 4.94 billion litres of the product were imported in 2023, indicating an increase of 23.66 per cent compared to 4 billion litres in 2022.